Paytm, MobiKwik, Pine Labs shares rally up to 6% after govt announces UPI fees above Rs 2,000. Why brokerages are bullish
Paytm, MobiKwik and Pine Labs are likely to remain in focus after the government announced MDR on select UPI transactions above Rs 2,000. From October 15, merchants will pay a 0.4% fee on eligible P2M UPI transactions, capped at Rs 300 for payments of Rs 75,000 or more.
Shares of Paytm, MobiKwik and Pine Labs surged over 6% on Wednesday after India's government announced a new Merchant Discount Rate (MDR) for select UPI transactions over Rs 2,000. On the BSE, Paytm rose 6% to a high of Rs 1,829 per share, while MobiKwik Systems climbed over 5% to Rs 213 and Pine Labs gained nearly 3% to Rs 199 on the NSE.
The National Payments Corporation of India (NPCI) announced that the government will impose the MDR on some Person-to-Merchant (P2M) UPI transactions from October 15, charging merchants 0.4% on transactions above Rs 2,000 with a maximum fee of Rs 300 for payments of Rs 75,000 or more. Small merchants with UPI QR code transactions up to Rs 1 lakh per month will remain exempt.
Consumers will not be charged for UPI payments, and Person-to-Person transfers will continue to be free. Transactions up to Rs 2,000 will remain fee-free, accounting for over 95% of UPI P2M transaction volume. The Reserve Bank of India supports the MDR on large-value UPI transactions, stating it will strengthen the digital payments ecosystem and enable continued scaling and innovation.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Paytm shares jump over 7%; Pine Labs, One Mobikwik pare early gains yourstory.com
- UPI fees mean different payoffs for Paytm & Pine economictimes.indiatimes.com
