New Delhi: Shares of Paytm, One MobiKwik Systems and other fintech companies declined on Thursday, October 8, following reports that the government is considering postponing the rollout of merchant discount rate (MDR) charges on certain UPI transactions.
One 97 Communications, which operates the Paytm brand, fell as much as 10 per cent to Rs 1,560.60 on the BSE during the session. The stock later recovered partially to close at Rs 1,640, down 5.42 per cent.
Shares of One MobiKwik Systems declined 8.43 per cent to Rs 234.40 during intraday trading before ending at Rs 244.30, down 4.57 per cent.
Pine Labs also fell nearly 5 per cent during the session and closed 4.39 per cent lower at Rs 169.75. Network People Services Technologies declined 3.39 per cent to finish at Rs 1,791.30.
The decline came amid reports that a proposal to defer the implementation of MDR on UPI transactions from October 15 to January 1 is under consideration. A decision on the proposal is reportedly expected in the coming days.
The government had announced last month that MDR could be charged on UPI transactions above Rs 2,000, with a proposed fee of 0.4 per cent. Fintech stocks had gained following the announcement on expectations that the charges could provide an additional revenue stream for payment companies.
Meanwhile, economic think tank Global Trade Research Initiative (GTRI) called on the government to withdraw the proposed UPI charges and maintain free digital payments for both merchants and consumers.
The reported delay has therefore added uncertainty over the expected revenue impact of the proposed MDR framework on fintech companies.
