Paytm, MobiKwik Shares Slide 10% Amid UPI MDR Delay

Paytm and MobiKwik Shares Decline as UPI MDR Implementation Faces Delay

The delay in the implementation of the new UPI merchant discount rate (MDR) framework has led to significant declines in the share prices of Paytm and MobiKwik, raising concerns among investors.

Market Reaction to UPI MDR Delay

Shares of One 97 Communications, the parent company of Paytm, plummeted by 10% to ₹1,560.60 on the BSE during intraday trading. This decline marks a significant drop of 16% from its 52-week high of ₹1,856.50, reached just weeks earlier on September 16, 2026. In contrast, MobiKwik’s shares fell by 7% to ₹238.25, following a recent rally that saw its stock rise by 22% over the past three trading days. The combined trading volumes for both companies indicated heightened investor activity, with millions of shares changing hands on the exchanges.

Understanding the UPI MDR Framework

The proposed delay in the UPI MDR framework implementation is expected to provide additional time for merchants and payment firms to adapt, particularly during the peak festive season. The new framework, which was initially set to launch on October 15, 2026, includes a merchant discount rate of 0.4% on UPI transactions exceeding ₹2,000, capped at ₹300 per transaction. Notably, small merchants and person-to-person (P2P) transactions will remain exempt from this charge.

Analysts have noted that the MDR rate is higher than previous expectations, with Jefferies recently revising its earnings forecasts for Paytm by 20-25% to account for the new rate. The brokerage now anticipates a further increase in earnings for FY28-29 by 10-12%, reflecting the broader revenue pool despite adjustments for competitive pricing and exemptions.

Implications for Paytm and MobiKwik

Paytm, a pioneer in mobile payments and financial services in India, aims to integrate half a billion Indians into the formal economy. However, the delay in the UPI MDR rollout could impact its growth trajectory and revenue generation capabilities. Jefferies has set a target price of ₹1,540 for Paytm, based on a valuation of 23 times its expected enterprise value to EBITDA for September 2028.

For MobiKwik, the largest digital wallet in India, the recent share price fluctuations reflect a volatile market sentiment. As the company continues to offer a wide range of payment solutions, its ability to navigate regulatory changes will be crucial for maintaining investor confidence and market position.

Key Highlights

• Paytm shares fell 10% to ₹1,560.60, marking a 16% drop from its 52-week high.
• MobiKwik shares declined 7% after a recent rally of 22%.
• The UPI MDR framework implementation has been postponed to January 1, 2027.
• New MDR rates include a 0.4% charge on transactions above ₹2,000, capped at ₹300.
• Jefferies revised Paytm’s earnings forecast upwards by 10-12% for FY28-29.

Investor Note: The recent decline in Paytm and MobiKwik shares highlights the sensitivity of fintech companies to regulatory changes. Investors should monitor the evolving landscape of UPI regulations and assess how these developments may impact the financial performance of these digital payment platforms in the coming quarters.