India's proposed fee on large UPI transactions to lift earnings of Pine Labs, Paytm, analysts say

Pine Labs

15/09/2026 07:19

** Analysts say merchant discount rate on large transactions via India's United Payments Interface will boost earnings of Pine Labs PINL.NS and Paytm-owner One 97 Communications PAYT.NS
** India notified changes in payments legislation on Monday, altering an earlier provision that prevented banks from charging fees on UPI payments
** New rules pave way for charges to be imposed on money transfers above 2,000 rupees ($20.86)
** MDR of 15-35 bps can lift earnings for Paytm and Pine Labs by 15% to 35% and 10% to 20%, respectively--Jefferies
** PAYTM and PINL up 31.6% and 41.3%, respectively, since August, in anticipation of the news
** Ambit says anticipated move marks inflection point for payment ecosystem
** Initiates coverage of Pine Labs and Paytm with "buy"; TP of 2,100 rupees for PAYT, Street-high TP of 250 rupees for PINL
** Shares of PINL and PAYT down 2.89% and 2.24%, respectively, on Tuesday
** YTD, PINL down 17.98%, PAYT up 36.01%

             
($1 = 95.9000 Indian rupees)

 (Reporting by Saikeerthi in Bengaluru)
 ((Saikeerthi@thomsonreuters.com; (+91) 8296756080))