Paytm Share Price Today: Shares of One97 Communications, the parent company of Paytm, came under heavy selling pressure on Thursday, October 8, falling as much as 10% in early trade. The decline followed reports that the proposed rollout of the new Merchant Discount Rate (MDR) framework for UPI transactions could be pushed back by more than two months.
Other listed digital payment companies, including Pine Labs and One MobiKwik Systems, also faced selling pressure as investors reassessed the timing of the revenue opportunity expected from UPI merchant payments.
Why Are Paytm Shares Falling Today?
The immediate trigger for the sell-off is the possibility that the UPI MDR framework may not come into effect on October 15, 2026, as originally planned.
Under the proposed framework, a 0.4% MDR would apply to eligible person-to-merchant (P2M) UPI transactions above ₹2,000. The charge would be capped at ₹300 for transactions of ₹75,000 and above, while UPI payments would remain free for consumers.
The implementation is now reportedly being considered for January 1, 2027. If approved, the delay would push back the additional revenue that payment companies had expected to generate from merchant transactions.
Why Does the MDR Delay Matter for Paytm?
Paytm has a significant merchant payments business and had emerged as one of the potential beneficiaries of UPI monetisation.
The proposed MDR framework was expected to create a new revenue stream from eligible merchant transactions that are currently processed without a merchant charge. A delay of more than two months would therefore mean that the anticipated revenue boost would also be deferred.
According to a Business Standard report, the proposal to shift the implementation date to January 1 is under consideration, with a final decision expected in the coming days. The possible deferment is reportedly linked to efforts to keep UPI payments free for merchants during the festive season following objections from retail traders’ associations.
Paytm, Pine Labs and MobiKwik Under Pressure
The potential delay has affected several payment stocks, with Paytm among the companies facing the sharpest reaction because of its large merchant payments operation.
Pine Labs and One MobiKwik Systems have also come under pressure as investors reassess the timeline for monetising UPI merchant transactions.
Payment stocks had rallied after the MDR framework was announced in September, with investors viewing it as a significant new revenue opportunity. Paytm shares had gained more than 7% at one point following the announcement.
RBI Move Adds to Paytm’s Focus
The sell-off also comes a day after the Reserve Bank of India removed Paytm Payments Bank Ltd (PPBL) from the list of scheduled banks under the Second Schedule of the RBI Act.
The move forms part of the winding-up process involving PPBL after the RBI cancelled the bank’s licence earlier this year. While the immediate market trigger on Thursday was the potential delay in UPI MDR implementation, the RBI development has also kept Paytm in focus.
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