Shares of leading Indian fintech firms, including Paytm, Pine Labs, and MobiKwik, recorded declines on October 8, 2026, following reports that a planned merchant discount rate on select Unified Payments Interface transactions could be postponed.
Market Reaction Across the Fintech Sector
By the close of trading on October 8, 2026, Paytm shares on the BSE fell 5.4% to ₹1,640, having touched an intraday low of ₹1,560.60. Pine Labs ended the session down 4.3% at ₹169.75, while MobiKwik declined 4.5%.
During intraday trading, Paytm held a market capitalization of ₹1,05,416.1 crore ($10.8 billion), while Pine Labs was valued at ₹19,619.18 crore ($2 billion) and MobiKwik reached ₹1,899.7 crore ($196.3 million).
Proposed Rollout Postponement and Exemptions
The sell-off followed reports that the implementation of the merchant discount rate (MDR) for select UPI payments may be deferred from October 15 to January 1, 2027. According to a report by Business Standard, the proposal to delay the rollout is currently being evaluated, with a final determination expected shortly. If enacted, the delay would keep eligible merchant payments free of fees throughout the festive season.
The NPCI-led UPI and Services Steering Committee convened on Wednesday to discuss the proposed framework. The committee is considering raising the merchant exemption threshold to businesses with an annual turnover of up to ₹40 lakh, replacing an earlier plan that exempted merchants receiving up to ₹1 lakh per month through UPI QR codes directly into bank accounts.
Regulatory Stance and Network Growth
Reserve Bank of India Governor Sanjay Malhotra addressed the policy shift on Wednesday, stating that a small MDR fee is unlikely to cause a significant drop in UPI transaction volumes and noting that no volume reduction has been observed.
The market movements occurred alongside continued growth on the platform. In September 2026, UPI processed 24.07 billion transactions worth ₹29.37 trillion, marking a 22.6% increase in volume and an 18% rise in total value year-over-year.
AI-generated editorial illustration; not a documentary photograph.
Source: Pine Labs, Paytm, MobiKwik Shares Slide Amid Reports Of UPI MDR Delay
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