Paytm, Pine Labs, One Mobikwik shares rebound after up to 6% fall; UPI MDR rollout post Diwali

Shares of One 97 Communications Ltd, One Mobikwik Systems Ltd and Pine Labs Ltd rebounded sharply after falling up to 6 per cent in Tuesday's trade as NPCI said the Merchant Discount Rate (MDR) on select person-to-merchant (P2M) UPI transactions would be implemented immediately after Diwali, with the date to be notified separately. The UPI and Services Steering Committee took the decision keeping the festive season in mind.

While a delay in implementation was on the cards, a media report earlier suggested that MDR would be introduced from January 1, 2027.

Paytm shares plunged over 6 per cent per cent to hit a low of Rs 1,570.40 in a knee-jerk reaction to the announcement. It recovered and was later trading 2 per cent lower at Rs 1,653 apiece. Pine Labs, which fell nearly 4 per cent, turned positive and was trading 1.26 per cent higher at Rs 164.95. One Mobikwik Systems Ltd was in fact trading 3 per cent higher at Rs 247.90, after falling nearly 4 per cent earlier in the day.

The introduction of MDR on large-ticket UPI transactions was seen as a significant catalyst for fintech profitability. October 15 had earlier been announced as the date for implementing MDR on UPI transactions.

To recall, MDR of up to 0.4 per cent on UPI Person-to-Merchant (P2M) transactions exceeding Rs 2,000 was announced earlier, leading to rally in fintech shares. For Paytm, UPI P2M constituted 85 per cent of gross merchandise value (GMV), of which 35 per cent by value is MDR-eligible.

For Pine Labs, Emkay earlier estimated UPI P2M GTV of Rs 3 lakh crore in FY28 (12 per cent of DITP GTV), of which 86 per cent by value sits above the threshold, giving MDR-eligible GTV of Rs 2.58 lakh crore (10 per cent of DITP GTV).