Paytm slips 5% amid reports of deferred UPI merchant fees
Shares of Paytm, One Mobikwik Systems and other fintech firms ended lower on Thursday amid reports that a proposal to defer the rollout of merchant discount rate (MDR) on UPI to January 1, from October 15, is under consideration.
One 97 Communications, which owns the Paytm brand, tanked 10 per cent to Rs 1,560.60 during the day on the BSE. It finally ended at Rs 1,640, down 5.42 per cent.
One Mobikwik Systems shares dropped 8.43 per cent to Rs 234.40 in intraday deals. The stock later ended 4.57 per cent lower at Rs 244.30.
Pine Labs declined 4.95 per cent to Rs 168.75 during the day before ending at Rs 169.75, down 4.39 per cent. Network People Services Technologies dropped by 3.39 per cent to close at Rs 1,791.30. Last month, the Government allowed charging MDR, under which transactions above Rs 2,000 will attract a fee of 0.4 per cent. Shares of fintech firms jumped when the announcement was made last month amid hopes that this will generate additional revenue.
According to reports, a proposal to defer the rollout of merchant discount rate on Unified Payments Interface (UPI) to January 1 from October 15 is under consideration, with a decision expected in the next few days.
Meanwhile, economic think tank GTRI said on Thursday that the Government should withdraw the proposed UPI charges, scheduled to take effect on October 15, and keep the digital payment system free for merchants and consumers.
