Shares of India’s listed payments companies sold off sharply on Thursday. Paytm, One MobiKwik, Pine Labs and AvenuesAI fell up to 10% in morning trade on reports that a long-awaited fee on UPI transactions may be pushed back.
How Much Did the Stocks Fall?
- Paytm (One 97 Communications): Fell as much as 10% to ₹1,560.60 on the BSE. That was its biggest one-day drop since February 1. The stock is now about 16% below its 52-week high of ₹1,856.50, hit on September 16, 2026. It had rallied around 96% from its March 30 low of ₹947.15.
- One MobiKwik Systems: Fell between roughly 7% and 8.4%, trading near ₹235 to ₹238. One report attributed part of the drop to profit booking.
- Pine Labs: Fell about 4%, trading around ₹170.
- AvenuesAI: Also slid in early trade, according to BusinessToday.
What Is Behind the Sharp Fall?
The trigger is uncertainty over the UPI Merchant Discount Rate (MDR). Reports say the rollout of the new framework, originally due on October 15, 2026, could be deferred to January 1, 2027. No final decision has been announced. One report says the proposed MDR would be a 0.4% fee on payments above ₹2,000, though the exact structure has not been officially confirmed in the sources reviewed.
Why it matters: UPI payments are free for merchants today, so payment companies earn little from the volume they process. An MDR on large-ticket transactions was seen as a major catalyst for fintech profitability. A delay pushes back a projected revenue stream. Reports also cite concerns from traders and small-business groups about the impact on local shops and MSMEs.
Analysts Still Positive Despite the Drop
The selling came despite upbeat brokerage views on the sector. Goldman Sachs analyst Manish Adukia raised his Paytm target to ₹2,070 from ₹1,500, citing market share, revenue growth and margin momentum.
What Investors Should Watch
- An official announcement on whether the October 15 date holds or moves to January 1, 2027
- The final MDR slab structure and any exemptions for small merchants
- Upcoming quarterly earnings from Paytm, MobiKwik and Pine Labs
This article is for information only and is not investment advice. Stock prices move quickly and figures above reflect early-trade levels on October 8, 2026. Check live data and consult a registered adviser before making decisions.
Frequently Asked Questions
Why did Paytm shares fall 10% today?
Mainly because of reports that the UPI MDR rollout may be delayed from October 15, 2026 to January 1, 2027, which would defer a potential revenue boost.
Was this Paytm’s biggest fall in a long time?
It was its steepest single-day drop since February 1, according to BusinessToday.
Which stocks were hit?
Paytm, One MobiKwik, Pine Labs and AvenuesAI.
What is UPI MDR?
It is a fee merchants would pay on certain UPI transactions. UPI is currently free for merchants.
Is the MDR delay confirmed?
No. Reports say a deferral is being considered, with no final decision yet.
Do analysts still like Paytm?
Goldman Sachs raised its target price to ₹2,070 from ₹1,500 even as the stock fell.
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