India's Paytm pares gains, MobiKwik reverses as brokerages weigh UPI fee benefits

Pine Labs

16/09/2026 05:32

** Shares of India's Paytm PAYT.NS pares gain of as much as 7.3% to trade 1.05% higher; MobiKwik ONEM.NS reverses 6.5% jump to fall 1.2%, while Pine Labs PINL.NS drops 3.5%
** India's payments authority introduced 0.4% merchant discount rate (MDR) on select UPI merchant transactions above 2,000 rupees (about $20) from October 15, creating new revenue stream for payment firms after years of zero fees
** Brokerages broadly see framework as positive for payment ecosystem, but benefits vary depending on firms' role in transaction chain and share of eligible payments
** Goldman sees 40%-70% potential upside to FY28 EBITDA estimates for Paytm; JM Financial estimates 19% uplift under its base case and raises PT to 2,150 rupees from 1,950 rupees
** Ambit, however, prefers Pine Labs over Paytm, citing its more diversified revenue streams and favourable valuations; says direct impact of UPI MDR on Pine Labs is limited


($1 = 95.8900 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru)
 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))