UPI stocks in focus

Paytm and One MobiKwik saw volatile trade today after the new UPI MDR framework raised hopes of better monetisation for listed fintech platforms. On the BSE, Paytm was trading at Rs. 1,738.95, up 0.45%, after opening sharply higher at Rs. 1,829.35 and touching a fresh 52-week high of Rs. 1,856.50. One MobiKwik, however, gave up its early gains and was trading at Rs. 197.35, down 2.28%, after opening at Rs. 213.35 and touching an intraday high of Rs. 214.00.

Trigger

• MDR of up to 40 bps will apply on P2M UPI transactions above Rs. 2,000 from October 15, 2026.
• P2P UPI transactions remain free.
• Small merchants are exempt, while higher-value payments above Rs. 75,000 will have the MDR capped at Rs. 300.
• Brokerages see the move as positive for payment companies as it creates a possible revenue stream from high-value UPI merchant transactions.

The market is treating this as a monetisation trigger for fintechs. UPI has scaled massively, but direct revenue for payment platforms has remained limited. With MDR now allowed on select high-value merchant transactions, companies like Paytm and MobiKwik could benefit through better payment economics, especially where they have strong merchant-acquiring businesses.

Paytm’s stronger move reflects its larger merchant network and better operating leverage, but the stock has already run up sharply and is trading at a very high consolidated PE of around 172x. MobiKwik’s reversal into the red shows that the market is more selective- the company still has negative trailing EPS, so investors may wait for clearer evidence of revenue conversion and profitability before assigning a stronger re-rating.

MDR does not apply to all UPI transactions, small merchants are exempt, and the final earnings impact will depend on merchant mix, transaction size, sharing with banks, and whether merchants continue using UPI for larger payments at the same pace.