Markets India

Shares of Paytm, Pine Labs, and Mobikwik fell up to 7% after the National Payments Corporation of India delayed the UPI MPR fee rollout beyond Diwali, missing a key revenue window for fintech firms.

Paytm, Pine Labs, Mobikwik Shares Drop 7% as UPI MPR Fee Delay Pushes Beyond Diwali

The National Payments Corporation of India (NPCI) postponed the implementation of merchant discount rates (MDR) on select UPI transactions from October 15, affecting Paytm, Pine Labs, and Mobikwik. The delay, announced after stakeholder pressure, avoids disrupting holiday commerce during the festive season. Paytm shares plunged over 7% to Rs 1,571, Pine Labs dropped 5% to Rs 154.42, and Mobikwik fell 4%, according to ET Markets. The MDR applies to Person-to-Merchant (P2M) UPI transactions above Rs 2,000, with revised implementation dates pending stakeholder communication. Trade bodies like the All India Consumer Products Distributors Federation (AICPDF) and All India Mobile Retailers Association (AIMRA) had pushed for a deferment, citing potential revenue loss during high-traffic periods. The delay removes a key revenue stream for fintech firms, risking short-term earnings and creating uncertainty over the MDR structure. Stakeholders may seek revised terms, such as raising the Rs 2,000 transaction threshold or excluding merchant-to-merchant transactions from the fee regime. The withdrawal of the 'New UPI Day' protest after talks with the finance minister suggests potential compromise but leaves the final MDR framework unresolved.

NPCI will communicate the revised MPR fee implementation date to stakeholders soon. The AICPDF and AIMRA have withdrawn their protest call after discussions with the finance minister.

The delayed UPI MPR fee rollout reduces immediate revenue for Paytm, Pine Labs, and Mobikwik during the festive season. The key uncertainty remains whether the revised implementation date will align with stakeholder demands for a revised fee structure.

Topics: Fintech, UPI, MDR Fees, Paytm, Pine Labs, Mobikwik, India Markets, NPCI, Diwali, Merchant Discount Rate

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Source: ET Markets