Paytm, MobiKwik, Pine Labs Shares Fall Up To 6.5% Amid Uncertainty Over UPI MDR Charges Rollout

On October 8, shares of Paytm, MobiKwik Systems, and their parent company One 97 Communications plunged during early trading as investors awaited clarification on the impending implementation of the Unified Payments Interface (UPI) merchant discount rate (MDR). This reaction occurred following reports from merchant associations, fintech companies, and payment service providers requesting a delay in the proposed charges.

By 12:20 pm, Pine Labs shares were trading at Rs 170 on the BSE, marking a decline of nearly 4%. MobiKwik Systems saw a 6.5% drop, reaching Rs 239 per share. One 97 Communications fell 4.7%, settling at Rs 1,651.

The National Payments Corporation of India (NPCI) is reportedly considering postponing the UPI MDR implementation to January 2027. The current schedule had the charges set to take effect on October 15, 2026. The delays come amid concerns from industry participants about operational readiness, confusion over different MDR rates, transaction categories, and implementation policies.

Last month, the UPI Steering Committee authorized a 0.4% MDR for transactions exceeding Rs2,000. This additional fee aims to introduce a processing cost for merchants accepting eligible UPI payments. RBI Governor Sanjay Malhotra stated on Wednesday that introducing a modest MDR would likely have limited impact on UPI transaction volumes. Malhotra affirmed that he did not observe any decrease in volumes thus far. He added that a minor transaction fee would probably not substantially deter payment activity.

Malhotra also expressed confidence in bank credit growth remaining strong, thereby supporting economic activity. He highlighted that the central bank remains vigilant to potential asset quality risks stemming from excess liquidity. However, the RBI did not anticipate a deterioration in loan quality.