Paytm shares jumped as much as 7% to a fresh 52-week high on Wednesday after NPCI unveiled a new 0.4% UPI merchant fee, effective from 15 October. Mobikwik and Pine Labs reacted in opposite directions.
Why Paytm, Mobikwik and Pine Labs Moved Today
Digital payment stocks were among the most active names on the BSE and NSE on 16 September 2026. Paytm’s parent, One 97 Communications, rose as much as 7% intraday to touch a fresh 52-week high of around ₹1,855–1,856, against Tuesday’s close of ₹1,730.
The stock could not hold on to the entire gain. By late morning, it had given back most of the move and was trading only around 0.5–1.5% higher, as investors booked profits after the sharp opening rally.
Mobikwik followed a similar pattern. The stock climbed as much as 6% in early trade to near ₹214, but slipped into negative territory by the afternoon, trading around 2% below Tuesday’s close.
Pine Labs moved the other way from the start. The stock fell through the session, at one point down as much as 6–8% to trade near ₹179–186, even as some brokerages raised their price targets on it.
What Is the New UPI MDR Charge
The trigger for all three stocks was a new merchant discount rate (MDR) framework from the National Payments Corporation of India (NPCI), which runs UPI. NPCI’s circular was dated 15 September, and markets reacted to it on Wednesday.
From 15 October 2026, a 0.4% MDR will apply to person-to-merchant (P2M) UPI payments above ₹2,000. For transactions of ₹75,000 or more, the fee is capped at ₹300.
This charge sits within the payment ecosystem it is split between banks, payment apps and payment service providers. It is not a tax, and it is not charged directly to the customer making the payment.
The government has told banks to ensure merchants do not pass this cost on to shoppers, and UPI app providers have been barred from adding any platform fee of their own.
Which UPI Payments Stay Free
Person-to-person (P2P) transfers, such as sending money to family or friends, remain completely free, regardless of the amount. Small merchant payments and everyday transactions are also protected.
The Finance Ministry has said close to 96% of all P2M transactions will see no change at all, because most everyday purchases fall below the new threshold or the small-merchant exemption.
| Transaction Type | MDR Treatment |
|---|---|
| Person-to-person (P2P) transfers | Free, any amount |
| Merchant payment (P2M) up to ₹2,000 | Free |
| P2M transaction above ₹2,000 | 0.4% MDR applies |
| Transaction of ₹75,000 or more | MDR capped at ₹300 |
| Small merchants (up to ₹1 lakh/month via UPI QR) | Exempt, zero MDR |
| Railways, telecom, fuel, insurance | Separate flat-rate structure (~₹5/transaction in most cases) |
| Mutual fund and stock market-linked payments | Lower 0.02% MDR, capped at ₹300 |
NPCI has said the money collected will be used to strengthen UPI’s infrastructure, cybersecurity and support small-merchant digital payment adoption, rather than to create a profit pool for individual companies.
Why Brokerages Are Split on the Stock Impact
Several brokerages turned more positive on Paytm after the announcement. Jefferies said the notified rate was higher than the 25 basis points it had earlier expected and kept a “Buy” rating on the stock.
Goldman Sachs said the MDR framework could lift Paytm’s FY28 EBITDA estimate by 40–70%, since the announced rate is above the 20–30 basis points it had originally assumed.
Domestic brokerage Emkay Global estimated Paytm could earn close to ₹1,120 crore in UPI MDR revenue by FY28, based on a conservative take-rate assumption, and raised its target price on the stock.
Pine Labs’ fall was harder to explain from the headline numbers alone, since brokerages including Jefferies and Emkay also raised their target prices on the stock and estimated it could earn upwards of ₹150–160 crore in incremental FY28 revenue from the same MDR pool.
Zee Business managing editor Anil Singhvi offered two possible reasons: Paytm’s rally had already priced in some MDR expectations ahead of the official announcement, capping its fresh upside, while the ₹300 cap on high-value transactions was seen as more limiting for Pine Labs’ business mix.
What Investors Should Watch Next
The new framework only takes effect from 15 October 2026, so the actual revenue impact on Paytm, Mobikwik and Pine Labs will depend on how the MDR pool is eventually split between banks, payment apps and acquirers a formula NPCI has not yet finalised in public.
Given how sharply these stocks have swung within a single session, investors tracking them closely often prefer doing so through a reliable trading platform that shows live price and volume movement rather than relying on end-of-day figures alone.
Anyone looking to act on this news will also need an active demat account and trading account, since these are mandatory to buy or sell listed shares such as Paytm, Mobikwik or Pine Labs in the Indian stock market.
For now, the story remains a developing one, with the real test likely to come only after the October rollout and subsequent quarterly disclosures from the companies involved.
Investments in securities markets are subject to market risks. This article is for informational purposes only and is not investment advice.
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