Explained - Why Paytm, Pine Labs, MobiKwik shares fell up to 10% on Thursday
Reported by CNBC-TV18 Markets, not nibnow. We are not the publisher of this story, only the source is.
Investors saw Paytm, Pine Labs and MobiKwik shares drop because a new UPI merchant discount rate could increase transaction costs for their businesses, potentially squeezing margins.
The UPI MDR was said to kick-in from October 15, where a 0.4% MDR was to apply on Person-to-Merchant (P2M) transactions above ₹2,000. The MDR is capped at ₹300 for transactions of ₹75,000 and above, and there is also a ₹5 fixed rate for select categories.
The UPI merchant discount rate (MDR) is a fee charged on digital payments; a 0.4% rate applies to person‑to‑merchant transactions over ₹2,000, with caps and fixed fees for larger or specific transactions, and it directly affects payment‑service providers’ revenue models.
- •Implementation of the new UPI MDR on October 15
- •Any statements from the companies about how the fee structure will impact their earnings
- •Regulatory updates or adjustments to the MDR policy