Fintech Shares Bounce Back After NPCI Delays UPI MDR Fee Rollout Past Diwali

Fintech company shares including Paytm, Pine Labs, and Mobikwik rebounded after the National Payments Corporation of India delayed the rollout of merchant discount rate fees on select UPI transactions beyond Diwali. The rollout was earlier scheduled for October 15 and was expected to boost fintech earnings during the festive season. The NPCI stated that the revised implementation date will be communicated to stakeholders soon.

Market Impact

Following the announcement, fintech stocks witnessed strong buying at lower levels. Pine Labs share price moved from a low of 154 rupees 42 paise to 165 rupees. Zaggle Prepaid bounced from 163 rupees 87 paise to 165 rupees 50 paise, while Paytm parent One97 Communications bounced from 1571 rupees to 1675 rupees. One MobiKwik Systems and Moneyview shares also recovered from their daily lows.

Context

Merchant discount rate fees are charges paid by merchants to banks and payment processors for accepting digital payments. Any change to this fee structure directly affects the revenue models of digital payment platforms and fintech firms operating in India.