Paytm, MobiKwik Stocks Rise 8% Even As NPCI Considers Deferring UPI MDR Charges To January

Shares of Paytm and MobiKwik Systems surged over 2% in early trading on Friday, as investors eagerly await a decision on whether the upcoming UPI MDR charges will be postponed. Meanwhile, Pine Labs' stock declined amid uncertainty surrounding the new payment processing fees. Paytm shares rose nearly 2.5% to Rs1,682, while MobiKwik increased by 8% to Rs263.

The National Payments Corporation of India (NPCI), which manages UPI, is contemplating delaying the implementation of MDR charges. According to reports, the UPI Steering Committee met during the first half of the month to discuss the potential change, with a final decision expected between 1 pm and 2 pm. Industry participants had raised concerns about introducing additional transaction costs during the festive shopping season, seeking clarity on differing MDR rates and which UPI payment categories would incur the charges.

The proposal to set the UPI MDR at 0.4%, or 40 basis points, for transactions above Rs2,000 was initially scheduled to take effect on October 15, 2026. However, the proposed delay follows representations from merchant associations, fintech companies, and payment service providers. They argue that introducing additional transaction costs during the holiday shopping period could be detrimental, especially considering inflationary pressures. Another concern is that retailers might pass along the extra payment processing fees to customers.

The final decision on the UPI MDR implementation will be closely watched by digital payment companies, merchants, and investors. Should the charges be postponed, it would provide temporary relief to businesses as regulators and industry stakeholders have more time to address concerns surrounding the proposed framework.