Paytm Shares Hit 10% Lower Circuit; MobiKwik, Pine Labs Fall Up To 8% On UPI MDR Delay Concerns

Shares of digital payments companies fell sharply in early trade on Thursday, October 8, after reports suggested that the implementation of the new merchant discount rate (MDR) on select UPI transactions could be delayed.

One97 Communications, which operates Paytm, fell 10% to ₹1,558.80 as of 9:31 am. One MobiKwik Systems dropped 7.88% to ₹235.90, while Pine Labs declined 4.09% to ₹170.41.

The sell-off comes amid uncertainty over the UPI MDR framework, which is scheduled to take effect from October 15, 2026. Its implementation could reportedly be pushed to January 1, 2027, although a final decision is yet to be taken.

The proposed MDR was expected to open an additional revenue stream for digital payments companies. Under the framework, a 0.4% MDR will apply to eligible person-to-merchant UPI transactions above ₹2,000, with the charge capped at ₹300 for transactions of ₹75,000 and above.

A delay would therefore push back the expected revenue benefit from eligible UPI transactions, putting Paytm, MobiKwik and Pine Labs shares in focus today.

Why Paytm, MobiKwik And Pine Labs Shares Are Falling Today

The selling in fintech stocks follows uncertainty over the implementation timeline of the new UPI MDR framework. The framework was expected to create an additional revenue stream for payments companies by allowing charges on certain merchant transactions that were previously free.

Paytm had highlighted the potential revenue impact when the new framework was announced in September. In an exchange filing, One97 Communications said, “This will generate additional revenue from the merchant business for many of the payment transactions that were free earlier.”

MobiKwik had also said the change would allow it to earn revenue both as a third-party application provider (TPAP) on eligible consumer UPI person-to-merchant transactions and as an acquirer on its merchant GMV.

A delay in the October 15 implementation would therefore not change the underlying MDR framework, but would push back when payment companies could start earning this additional revenue.

Under the framework, an MDR of 0.4% will apply to eligible person-to-merchant UPI transactions above ₹2,000, with the charge capped at ₹300 for transactions of ₹75,000 and above.

Pine Labs, which operates across merchant payments and payment acceptance infrastructure, was also among the companies expected to benefit from the introduction of MDR on eligible transactions.

UPI MDR Implementation Date In Focus

The new UPI MDR framework is currently scheduled to come into effect on October 15. The proposed 0.4% MDR applies to specified person-to-merchant transactions above ₹2,000, while consumers will continue to make UPI payments without paying the charge.

The government had said that around 96% of person-to-merchant UPI transactions would remain unaffected by the change.

Reports of a possible deferment have now put the implementation date back in focus. If the rollout is shifted to January 1, 2027, the start of MDR-linked revenue for payment companies would also be pushed back.

For Paytm, MobiKwik and Pine Labs shares, investors will now watch for clarity on whether the October 15 implementation will proceed as scheduled or be deferred.

Also Read - UPI MDR Rollout From October 15 May Be Pushed To January 2027 As Industry Seeks More Time