{
  "id": 6758677,
  "title": "Fintech Stocks Rally On Report Of 40 Basis Point MDR On UPI, Paytm Touches 52-Week High",
  "url": "https://urgent.news/2026/09/11/fintech-stocks-rally-on-report-of-40-basis-point-mdr-on-upi-paytm",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T11:51:52.000Z",
  "source": {
    "name": "Inc42",
    "slug": "inc42",
    "url": "https://inc42.com/buzz/fintech-stocks-rally-on-report-of-40-basis-point-mdr-on-upi-paytm-touches-52-week-high/"
  },
  "original_language": "en",
  "account": "Fintech company stocks, including Paytm, Pine Labs, Mobikwik, and AvenuesAI, experienced a significant rally on the news of a potential 40 basis point merchant discount rate (MDR) for UPI transactions. Pine Labs saw the highest jump, rising 16.9% to close at ₹202.35, while Mobikwik climbed 8.1% to ₹209.80, and AvenuesAI increased 6.1% to ₹16.31. Paytm, meanwhile, ended the day's trading session 3.9% higher at ₹1,806.25, reaching a fresh all-time high of ₹1,829.50 during intraday trade.\n\nThe rally was sparked by reports that MDR fees on UPI payments may be set at around 40 basis points (0.4%) of the transaction value. This proposal came a month after the Centre amended the Payment and Settlement Systems Act (PSSA), 2007, to remove a ban on banks and system providers charging fees on UPI payments. MDR is expected to apply only to P2M transactions, excluding P2P transactions, and would be subject to a turnover-based threshold for merchants with an annual turnover of around ₹1 Cr-₹1.5 Cr or more. A differential fee structure could apply across sectors, according to an Economic Times report.\n\nThe news of the potential MDR has unlocked an estimated revenue stream of ₹5,000-10,000 Cr for payments platforms like the four mentioned companies. Jefferies estimated that the proposal could generate a revenue pool of this size by FY28, based on a 25% compound annual growth rate (CAGR) in the value of P2M transactions over FY26-28. Paytm's FY28 EBITDA and profit could grow 15-35%, while Pine Labs' could surge 9-23% in this scenario, according to Jefferies' calculations. Bernstein previously projected that Paytm could add ₹1,320 Cr to its EBITDA under a 35 basis point MDR on a subset of UPI transactions, estimating a potential ₹2,200 Cr in incremental EBITDA by FY30. However, concerns remain about potential slippage between the notified MDR rate and the actual take-rate if competition intensifies among payments platforms.",
  "summary": "Fintech company stocks — Paytm, Pine Labs, Mobikwik and AvenuesAI — rallied today amid reports suggesting that the merchant discount…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}