MUMBAI, Oct. 8
Shares of Paytm, One MobiKwik Systems and Pine Labs fell sharply on Thursday following reports that the proposed introduction of merchant discount rates (MDR) on select Unified Payments Interface (UPI) transactions could be postponed beyond the October 15 implementation date.
Paytm’s parent company, One97 Communications, saw its shares decline as much as 10 per cent to ₹1,560.60 on the BSE. One MobiKwik Systems dropped 8.43 per cent to ₹234.40, while Pine Labs fell 4.11 per cent to ₹170.25.
The selling followed reports that traders’ associations had requested the National Payments Corporation of India (NPCI) to delay the proposed charges until after the festive season or early next year.
NPCI is consulting stakeholders and has yet to take a final decision on the implementation timeline, according to people familiar with the discussions.
Under the proposed framework, select person-to-merchant UPI transactions exceeding ₹2,000 would attract a merchant discount rate. The charge would be borne by merchants rather than consumers.
The proposed fee structure had been viewed as a potential source of additional revenue for companies operating in India’s digital payments ecosystem.
Paytm and MobiKwik had previously attracted investor interest following the announcement of the proposed framework, as markets anticipated that eligible UPI transactions could generate new fee income.
A postponement would delay those potential earnings, prompting investors to reassess expectations for payment companies.
The timing is particularly important because the proposed October 15 rollout falls during India’s festive shopping period, when merchants typically experience increased transaction volumes.
Traders’ associations have sought additional time before the charges are introduced, proposing implementation after the festive season or at the beginning of next year.
The request remains under consideration, and there has been no confirmed change to the proposed implementation date.
India’s UPI network currently operates under a zero-MDR framework for standard transactions, allowing merchants to accept payments without paying transaction-based fees.
The proposed introduction of charges on selected higher-value merchant transactions would create a new revenue opportunity for payment service providers while increasing transaction costs for affected businesses.
For fintech companies, the potential financial benefit would depend on the final fee structure, the categories of transactions covered and how revenue is distributed among participants in the payments ecosystem.
The uncertainty surrounding implementation has affected stocks that had recently benefited from expectations of additional UPI-related income.
Paytm shares had declined approximately 4.25 per cent over the preceding month but remained about 24 per cent higher since the beginning of 2026.
MobiKwik had recorded stronger recent gains, rising approximately 22.74 per cent over the past month and more than 21 per cent in the preceding week before Thursday’s decline.
The recent rally left the stock exposed to selling when reports emerged that the anticipated policy change might take longer to implement.
At 10:15 am, Paytm was trading 5.15 per cent lower at ₹1,644.70 on the BSE. MobiKwik was down 6.58 per cent at ₹239.15, while Pine Labs had declined 2.93 per cent to ₹172.35.
The smaller losses at that point, compared with the stocks’ steepest declines during the session, indicated that some of the initial selling pressure had eased.
For investors, the immediate concern is not the cancellation of the proposed MDR framework but uncertainty over when it might take effect.
NPCI’s final decision will determine whether the proposed October 15 implementation proceeds or is deferred following consultations with traders and other stakeholders.
Until then, expectations of additional transaction-linked revenue for payment companies will remain dependent on the timing and final terms of the proposed policy.
