Archive · 8 Oct 2026
Payment Stocks Slide as UPI Merchant Fee Plans Face Uncertainty
Shares in several companies that handle digital payments fell as investors waited for news about a proposed fee on some UPI payments.
The fee is planned for certain transactions above Rs 2,000.
Some businesses and payment companies have asked for the fee to be delayed.
Reports said it might be postponed until January 2027, but a decision was still pending.
The National Payments Corporation of India was expected to discuss the requests.
The articles report different share prices and declines, apparently from different trading snapshots.
India’s central bank governor said a small fee was unlikely to cause a major drop in UPI use.
A Goldman Sachs analyst raised his price target for Paytm, citing the company’s market share, revenue growth and margins.
Paytm, One MobiKwik Systems and Pine Labs shares fell amid uncertainty over proposed UPI merchant discount rate charges; a separate report also listed AvenuesAI.
Reports said merchant associations, fintech firms and payment service providers sought a delay, with one report citing a possible postponement until January 2027.
The charges were scheduled to start on October 15, 2026; the proposed 0.4% rate applies to eligible UPI transactions above Rs 2,000.
One report said the National Payments Corporation of India could decide on deferral requests within two days after discussions with the Finance Ministry; another said its panel was likely to meet that day.
The articles give different share-price snapshots: Paytm was reported down as much as 10%, while the other report cited declines of 4.7% for One 97 Communications and 6.5% for MobiKwik.
- Who
- Paytm parent One 97 Communications, One MobiKwik Systems, Pine Labs and, in one report, AvenuesAI; the National Payments Corporation of India is considering deferral requests.
- What
- Payment-company shares fell amid uncertainty about when proposed UPI merchant discount rate charges will begin.
- When
- One article reports morning trading on October 8; the proposed charges are scheduled to take effect on October 15, 2026.
- Where
- Indian stock markets; the articles cite trading on the BSE.
- Why
- Investors were awaiting clarity after merchant associations, fintech companies and payment service providers reportedly requested that the proposed charges be postponed.
Reasons for concern
Reasons for reassurance
Market reaction and fee uncertainty
Reasons for concern
Payment-company shares fell as investors awaited clarity, while industry participants raised concerns about operational readiness and uncertainty over rates, transaction categories and implementation policies.
Reasons for reassurance
The proposed charges would apply only to eligible UPI transactions above Rs 2,000, and reports said requests to defer them were under consideration.
Effect on UPI use and Paytm
Reasons for concern
The share declines show investor concern about the proposed charges and their timing.
Reasons for reassurance
RBI Governor Sanjay Malhotra said a modest fee was unlikely to significantly affect UPI volumes; Goldman Sachs analyst Manish Adukia raised his Paytm target price, citing business momentum.
- Proposed MDR
- 0.4% (40 basis points) on eligible UPI transactions exceeding Rs 2,000.
- Scheduled start
- October 15, 2026.
- Reported deferral request
- Some reports said the National Payments Corporation of India received requests to postpone implementation until January 2027.
- Decision timing
- One report said a decision could come within two days after discussions with the Finance Ministry; another said an NPCI panel was likely to meet that day.
- Share-price snapshots
- One report cited Paytm at Rs 1,734, down 10%; another cited One 97 Communications at Rs 1,651, down 4.7%, and MobiKwik at Rs 239, down 6.5%. The reports therefore reflect different trading snapshots.
- RBI governor's view
- Sanjay Malhotra said a modest MDR was unlikely to significantly affect UPI transaction volumes.
- Goldman Sachs view
- Analyst Manish Adukia raised his Paytm target price to Rs 2,070 from Rs 1,500, citing market share, revenue growth and margin momentum.
