Archive · 15 Sep 2026
UPI Fee Fears Weigh on Paytm and Mobikwik Shares
Paytm and Mobikwik shares fell after investors worried that UPI payments might eventually have a fee.
Investors are concerned that even a small charge could make people use UPI less.
Abhishek Basumallik said this concern may be too strong because these companies were not earning money directly from UPI anyway.
He also said using UPI has become a habit for many people.
Because of this, a very small fee might not greatly reduce usage.
In the longer term, fees could help payment companies earn some money from the system.
That could make digital payments businesses more sustainable.
The final effect will depend on how the fee rules are designed.
Paytm shares fell 4% to Rs 1,731.10 during the current trading session.
One Mobikwik Systems shares declined 4.29% to Rs 200.
Investor concerns center on whether UPI fees could reduce transaction volumes and user activity.
Fund manager Abhishek Basumallik said the selloff may be sentiment-driven because the companies were not earning directly from UPI.
He said modest fees could ultimately benefit payment companies by giving them a share of transaction economics.
- Who
- Paytm, One Mobikwik Systems, investors, and fund manager Abhishek Basumallik.
- What
- Payment stocks fell as investors assessed the possible impact of fees on Unified Payments Interface transactions.
- When
- During the current trading session; no specific date is given.
- Where
- India's digital payments market.
- Why
- Investors feared that UPI fees could reduce transaction volumes, although Basumallik said modest fees could eventually improve payment companies' economics.
Fee Concerns
Potential Long-Term Benefit
Effect on usage
Fee Concerns
Even a small UPI charge could create friction and reduce transaction volumes or user activity.
Potential Long-Term Benefit
UPI has become a payment habit, so a very nominal fee may have little effect on usage.
Impact on fintech earnings
Fee Concerns
Investors fear that fee-related changes could hurt the outlook for payment platforms and explain the share-price declines.
Potential Long-Term Benefit
Because the companies were not earning directly from UPI, the immediate earnings risk may be limited and the selloff may be sentiment-driven.
Payment-system economics
Fee Concerns
Moving away from a fully free model could create uncertainty and short-term market volatility.
Potential Long-Term Benefit
Allowing ecosystem participants to retain some transaction revenue could make the payments system more sustainable and may be a slight positive over the medium to long term.
- Paytm share move
- Down 4% to Rs 1,731.10
- One Mobikwik Systems share move
- Down 4.29% to Rs 200
- Main concern
- Possible UPI fees could affect transaction volumes and user behaviour
- Analyst view
- The immediate selloff may be driven more by sentiment than by direct earnings risk
- UPI revenue
- The article says the companies were not earning directly through UPI
- Long-term possibility
- A small share of transaction economics could improve payment infrastructure sustainability
- Key uncertainty
- The eventual fee structure will determine the impact on fintech companies