1 hr ago
Payment Stocks Fall Amid Uncertainty Over UPI Merchant Charges
Shares of several companies that work in digital payments fell.
Paytm had the biggest drop, reaching the maximum daily fall allowed for its shares.
Reports said officials were considering whether UPI payments should remain free for merchants through the festive season.
A panel led by the National Payments Corporation of India was expected to discuss the issue.
The reports said a final decision could come in the next few days.
Investors had pushed back against the proposed change, according to the article.
Meanwhile, a Goldman Sachs analyst raised his price target for Paytm.
He said the company had strong market share and improving revenue and margins.
Paytm shares hit their 10% lower circuit limit at Rs 1,734 on the BSE, their biggest fall since February 1.
One MobiKwik Systems fell 8.35% to Rs 234.60, while Pine Labs declined 3.91% to Rs 170.60.
AvenuesAI was down 2.44% at Rs 15.18.
Reports said a panel headed by the National Payments Corporation of India was likely to discuss the issue, with a final decision expected in the coming days.
Goldman Sachs analyst Manish Adukia raised Paytm's target price to Rs 2,070 from Rs 1,500, citing market share, revenue growth and margin momentum.
- Who
- Paytm, One MobiKwik Systems, Pine Labs and AvenuesAI; a panel headed by the National Payments Corporation of India was expected to discuss the issue.
- What
- Shares of the payment-related companies fell amid uncertainty over whether UPI payments would remain free for merchants.
- Where
- The companies' shares were trading on Indian stock markets; Paytm's quoted price was on the BSE.
- When
- Today; reports said a final decision could be made in the next few days.
- Why
- Reports described a possible decision to keep UPI payments free for merchants through the festive season, amid pushback from retail investors.
Reasons for concern
Reasons for optimism
Paytm outlook
Reasons for concern
Paytm shares fell to their 10% lower circuit limit amid uncertainty about UPI merchant charges.
Reasons for optimism
Goldman Sachs analyst Manish Adukia raised his target price, citing strong market share, revenue growth and margin momentum; he said the expected impact of UPI merchant discount rates could support up to 40% EBITDA upgrades.
UPI merchant charges
Reasons for concern
Retail investors had pushed back against the proposed change, according to the reports cited in the article.
Reasons for optimism
The reported possibility of keeping UPI payments free for merchants through the festive season would preserve free payments for that period.
Key facts
- Paytm closing/quoted level
- Rs 1,734 per share; locked at the 10% lower circuit limit on the BSE.
- Paytm's recent comparison
- The biggest fall for the stock since February 1.
- One MobiKwik Systems
- Down 8.35% to Rs 234.60.
- Pine Labs
- Down 3.91% to Rs 170.60 at 9:28 a.m.
- AvenuesAI
- Down 2.44% to Rs 15.18.
- Goldman Sachs target for Paytm
- Raised by analyst Manish Adukia to Rs 2,070 from Rs 1,500.
- Reported policy timeline
- A panel headed by the National Payments Corporation of India was likely to meet that day; a final decision was expected in the next few days.
Sources
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