Paytm Shares Rise 0.55% After UPI MDR On Person-To-Merchant Transactions

Mumbai, September 16: One 97 Communications, the parent company of Paytm, said the National Payments Corporation of India has introduced a Merchant Discount Rate of up to 0.4% on UPI Person-to-Merchant transactions exceeding ₹2,000.

According to Paytm’s exchange filing dated September 15, 2026, NPCI issued a circular introducing a Merchant Discount Rate of up to 0.4% on UPI Person-to-Merchant transactions above ₹2,000.

The new framework will become effective from October 15, 2026. Paytm said the change could create an additional revenue opportunity from merchant transactions that were previously processed without a charge.

The company also clarified that the new MDR will not be levied on customers making UPI payments. Customers will continue to use UPI without being charged for these transactions.

Stock Market Snapshot

The Paytm share price stood at ₹1,739.50, up ₹9.50 or 0.55%, as of 9:48 AM IST on September 16, 2026, according to the market data shown.

The stock opened around ₹1,830 before moving lower during the early session. It traded near ₹1,740 at the latest available update.

The share price movement was recorded after Paytm disclosed the NPCI circular, although the filing does not establish that the rise was directly attributable to the MDR announcement.

New MDR Could Support Merchant Business Revenue

The introduction of MDR on selected higher-value merchant transactions could provide a new revenue stream for payment companies operating in the UPI ecosystem.

Paytm said the change is expected to generate additional revenue from merchant transactions that were earlier processed without a charge. The actual financial impact will depend on transaction volumes, merchant mix and the implementation of the new framework.

The company added that it will make further disclosures, if required, once the circular becomes effective and its impact can be assessed.

Customers To Continue Using UPI Without Charges

The new MDR framework applies to eligible UPI Person-to-Merchant transactions above ₹2,000.

Paytm stated that customers will not be charged for making UPI payments. The merchant-side pricing framework is separate from the customer experience, meaning users can continue to make UPI payments without an additional transaction fee.

The circular is expected to take effect from October 15, 2026, subject to the terms and conditions specified by NPCI.

Paytm’s Position In Digital Payments

Paytm operates a digital payments and financial services platform, offering merchant payment solutions, digital transactions and related financial products.

Its merchant business includes payment acceptance solutions for businesses across online and offline channels. The company has also developed services around payment processing, merchant engagement and financial services distribution.

The MDR change is relevant to Paytm’s merchant payments operations because it could alter the revenue structure for certain higher-value UPI transactions.

Conclusion

NPCI has introduced a Merchant Discount Rate of up to 0.4% on UPI Person-to-Merchant transactions above ₹2,000, with the framework set to become effective from October 15, 2026.

Paytm said the move could generate additional revenue from merchant transactions that were previously processed without a charge. Customers, however, will continue to make UPI payments without being charged.

The company plans to assess the financial impact after the circular becomes operational and will make further disclosures if required.

Meanwhile, the Paytm share price rose ₹9.50 or 0.55% to ₹1,739.50 as of 9:48 AM IST on September 16, 2026.

Source:

• https://www.nseindia.com/get-quote/equity/PAYTM/One-97-Communications-Limited
• https://nsearchives.nseindia.com/corporate/PAYTM_15092026234600_SEDisclosureNPCICircularsd.pdf