Paytm, One Mobikwik shares: How UPI fee fears may affect sentiment in fintech players
Paytm and Mobikwik stocks: The market’s bigger worry is whether even a small charge could dent transaction volumes across the ecosystem.
- Sep 15, 2026,
- Updated Sep 15, 2026 5:04 PM IST
Shares of listed fintech players such as Paytm and One Mobikwik Systems Ltd may be reacting to uncertainty around a possible fee on UPI transactions, but the medium-term business impact could be far less severe than the market fears. That is the core takeaway emerging from the latest debate around merchant discount rate-like charges on higher-value UPI payments, with experts arguing that India’s digital payments habit is now too entrenched to be easily disrupted.
Knee-jerk selloff, limited earnings risk
Asked whether investors should worry about the sharp reaction in payment stocks, Abhishek Basumallik, co-founder and fund manager at Shree Rama Managers PMS, struck a measured note. “Not that I understand, as of now, because anyway, they were not earning anything through UPI,” he said, suggesting the immediate selloff may be more sentiment-driven than fundamentally justified.
That distinction matters. If UPI was not a meaningful direct revenue stream for these platforms, then any stock correction tied purely to fee-related anxiety may reflect concerns over user behaviour rather than actual earnings erosion.
Meanwhile, Paytm stock ended 4% lower at Rs 1731.10, shares of One Mobikwik Systems slipped 4.29% to Rs 200 in the current trading session.
The real question is usage, not just fees
The market’s bigger worry is whether even a small charge could dent transaction volumes across the ecosystem. Basumallik, however, argued that the risk may be overstated. “If the fee is very nominal, I’m not sure if there is going to be any impact because we’ve seen that paying through UPI has sort of become a practice, or it’s become a habit,” he said.
That observation goes to the heart of India’s digital payments story. UPI is no longer merely a low-cost alternative to cash or cards; it has become embedded in everyday commerce. Once a payment rail reaches that level of behavioural adoption, modest friction does not necessarily translate into a meaningful drop in usage.
Why the outlook may still improve
There is also a more constructive angle for investors. If the eventual framework allows ecosystem participants to retain even a small share of transaction economics, the move could improve the long-term sustainability of digital payments infrastructure. Basumallik said he does not see the development as a negative over the “medium to long term” and added that it could “in fact” be “a slight positive” if companies “end up making a little bit of money.”
That view aligns with the broader industry debate: the shift from a fully free model to a lightly monetised one may create near-term noise, but it could strengthen the economics of the payments stack over time. For fintech stocks, that means the current volatility may ultimately hinge less on headline fear and more on the final design of the fee structure.
Shares of listed fintech players such as Paytm and One Mobikwik Systems Ltd may be reacting to uncertainty around a possible fee on UPI transactions, but the medium-term business impact could be far less severe than the market fears. That is the core takeaway emerging from the latest debate around merchant discount rate-like charges on higher-value UPI payments, with experts arguing that India’s digital payments habit is now too entrenched to be easily disrupted.
Knee-jerk selloff, limited earnings risk
Asked whether investors should worry about the sharp reaction in payment stocks, Abhishek Basumallik, co-founder and fund manager at Shree Rama Managers PMS, struck a measured note. “Not that I understand, as of now, because anyway, they were not earning anything through UPI,” he said, suggesting the immediate selloff may be more sentiment-driven than fundamentally justified.
That distinction matters. If UPI was not a meaningful direct revenue stream for these platforms, then any stock correction tied purely to fee-related anxiety may reflect concerns over user behaviour rather than actual earnings erosion.
Meanwhile, Paytm stock ended 4% lower at Rs 1731.10, shares of One Mobikwik Systems slipped 4.29% to Rs 200 in the current trading session.
The real question is usage, not just fees
The market’s bigger worry is whether even a small charge could dent transaction volumes across the ecosystem. Basumallik, however, argued that the risk may be overstated. “If the fee is very nominal, I’m not sure if there is going to be any impact because we’ve seen that paying through UPI has sort of become a practice, or it’s become a habit,” he said.
That observation goes to the heart of India’s digital payments story. UPI is no longer merely a low-cost alternative to cash or cards; it has become embedded in everyday commerce. Once a payment rail reaches that level of behavioural adoption, modest friction does not necessarily translate into a meaningful drop in usage.
Why the outlook may still improve
There is also a more constructive angle for investors. If the eventual framework allows ecosystem participants to retain even a small share of transaction economics, the move could improve the long-term sustainability of digital payments infrastructure. Basumallik said he does not see the development as a negative over the “medium to long term” and added that it could “in fact” be “a slight positive” if companies “end up making a little bit of money.”
That view aligns with the broader industry debate: the shift from a fully free model to a lightly monetised one may create near-term noise, but it could strengthen the economics of the payments stack over time. For fintech stocks, that means the current volatility may ultimately hinge less on headline fear and more on the final design of the fee structure.