Paytm Stock Crashes 10%: What’s Behind Today’s Sharp Fall in One97 Communications Shares?

Paytm Share Price Today: One97 Communications shares, which own and operate Paytm, plunged up to 10% in early trading on Thursday, October 8, as investors reacted to reports that the proposed UPI Merchant Discount Rate (MDR) system could be delayed until January 2027.

The possible postponement has also weighed on other payment stocks, including Pine Labs and One MobiKwik Systems, as the market reassessed when digital payment companies could begin earning additional revenue from UPI merchant transactions.

What Triggered the Paytm Share Price Fall?

The key concern for investors is the reported delay in implementing the proposed UPI MDR framework.

The new system was scheduled to begin from October 15, 2026. Under the proposal, eligible person-to-merchant UPI transactions above ₹2,000 would attract an MDR of 0.4%. For transactions of ₹75,000 or more, the fee would be capped at ₹300.

Importantly, the proposed charge would apply to merchants rather than consumers, meaning customers would continue to use UPI without paying a transaction fee.

A possible shift of the implementation date to January 1, 2027 would effectively postpone the revenue opportunity for payment companies by more than two months.

Why Is the Delay Important for Paytm?

Paytm operates one of India’s largest merchant payment networks and was seen as a key potential beneficiary of the proposed UPI monetisation model.

The introduction of MDR was expected to give payment companies a way to generate revenue from a segment of merchant UPI transactions that has largely remained free. Investors had therefore factored in the potential earnings impact of the new framework.

With the proposed October 15 rollout now reportedly under review, those revenue expectations have been pushed further out.

Business Standard reported that the government is considering moving the implementation to January 1, with a final decision expected shortly. The reported move is aimed at keeping UPI transactions free for merchants during the festive season amid opposition from retail traders’ groups.

Paytm, Pine Labs, MobiKwik Stocks Under Pressure

The uncertainty has hit payment companies across the sector.

Paytm has seen a particularly sharp reaction because of its sizeable merchant payments business, while Pine Labs and One MobiKwik Systems have also declined as investors reassess the timing of UPI monetisation.

Payment stocks had rallied strongly after the MDR proposal was announced in September. Paytm shares, in particular, rose more than 7% at one stage as investors viewed the framework as a potential new source of revenue.

The latest reports have reversed some of that optimism, with investors now waiting for clarity on when the MDR regime will actually take effect.

RBI’s Paytm Payments Bank Move

Paytm is also in focus following a separate regulatory development.

On Wednesday, the Reserve Bank of India removed Paytm Payments Bank Ltd (PPBL) from the list of scheduled banks under the Second Schedule of the RBI Act. The move is part of the ongoing winding-up process involving PPBL after the RBI cancelled its banking licence earlier this year.

However, the immediate trigger behind Thursday’s sharp fall in One97 Communications shares is the uncertainty surrounding the timing of the proposed UPI MDR framework.