Paytm, MobiKwik Stocks Rise 8% Even As NPCI Considers Deferring UPI MDR Charges To January
Paytm and MobiKwik shares gained over 2% on Friday as the National Payments Corporation of India considered postponing UPI merchant discount rate charges until January 2027. Pine Labs declined in early trading. Merchants and fintech firms have sought a delay, citing festive season costs and uncertainty over implementation rules
Shares of Paytm and One MobiKwik Systems climbed more than 2% in early trading on Friday as investors awaited a decision on the possible postponement of merchant discount rate (MDR) charges on Unified Payments Interface (UPI) transactions.
Pine Labs, however, traded lower amid uncertainty over the proposed payment processing fees.
The stock of Paytm gained over 2.5% to Rs1,682, while MobiKwik advanced 8% to Rs263.
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NPCI may postpone UPI MDR charges
The National Payments Corporation of India (NPCI), which operates UPI, is considering deferring the introduction of MDR charges.
According to reports, the UPI Steering Committee was scheduled to meet during the first half today, with a decision expected between 1 pm and 2 pm.
The publication reported on Oct 8 that implementation could be postponed until January 2027.
The proposed delay follows representations from merchant associations, fintech companies and payment service providers.
Industry participants have raised concerns about introducing additional transaction costs during the festive shopping season.
They have also sought clarity on differing MDR rates and which categories of UPI payments would attract the charges.
How proposed 0.4% UPI MDR could affect merchants
The UPI Steering Committee had previously fixed MDR at 0.4%, equivalent to 40 basis points, for transactions exceeding Rs2,000.
The charges were originally scheduled to take effect on Oct 15, 2026.
MDR represents the fee merchants pay for processing digital transactions.
At the proposed rate, a Rs10,000 payment would attract a charge of Rs40.
The government was concerned about higher business expenses during festive sales, particularly amid inflationary pressures.
Another concern is that retailers could transfer additional payment processing costs to customers.
The final decision on implementation will be closely watched by digital payments companies, merchants and investors.
A postponement could provide temporary relief to businesses while allowing regulators and industry stakeholders more time to resolve questions surrounding the proposed framework.
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