Big decision! UPI MDR fee deferred till Diwali; check impact on Paytm, Pine Labs, One Mobikwik, Moneyview, Zaggle shares
Stock market today: In a major move towards UPI MDR implementation in India, the NPCI today announced that the decision has been delayed until Diwali 2026. After the announcement, fintech stocks — Paytm, Pine Labs, PB Fintech, Groww, Mobikwik witnessed a strong rebound from today's lows.
The NPCI declared about the delay in the UPI MDR fee implementation, saying, “UPI and Services Steering Committee today decided that keeping in mind the festival season, Merchant Discount Rate (MDR), on select Person-to-Merchant (P2M) UPI transactions, shall be implemented immediately post Diwali at a date to be notified separately.”
After the news broke about the UPI MDR fee delay till Diwali 2026, fintech stocks witnessed strong buying at the lower levels.
Pine Labs share price shot up from today's low of ₹154.42 apiece to ₹165 per share levels.
Zaggle Prepaid share price bounced back from ₹163.87 to ₹165.50, Paytm brand parent One97 Communications share price bounced back from ₹1571 to ₹1675 within a few minutes.
One MobiKwik Systems share price zoomed from ₹230.41 to ₹148 per share levels.
Shares of Moneyview also bounced back from today's low of ₹60.06 to ₹60.75 per share.
Fintech companies are expected to benefit from the delay in the UPI MDR fee of 0.04%, particularly during the fast-approaching festival season. AS the market has a tendency to discount the event much before the event, fintech stocks' rally should be seen from this angle,” said Mahesh m Ojha, VP —Research and Business Development at KC Securities.
The revised fee framework for Unified Payments Interface (UPI) transactions could indirectly burden consumers through higher retail prices, even as merchants are barred from directly passing on the charges, a technical report by researchers associated with IIT Bombay has warned, calling for changes to the proposed model.
The report estimates that the Merchant Discount Rate (MDR) framework could generate around ₹18,000 crore annually for payment service providers. However, it argues that businesses may incorporate the additional expense into their general selling prices to protect profit margins, potentially making even customers undertaking transactions below ₹2,000 bear part of the cost.
“UPI may lose public trust if it is floated as per the presently proposed MDR framework,” the report said, adding that the framework must be “tweaked and rationalised before implementation”.
Under the revised framework, merchant payments above ₹2,000 can attract an MDR of up to 0.40 per cent, capped at ₹300 per transaction. Person-to-person transfers and merchant payments up to ₹2,000 remain free.
Certain essential-sector transactions attract a flat fee of ₹5, while capital market transactions carry a charge of 0.02 per cent, subject to a ₹300 cap.
(With inputs from ANI)
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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