Paytm, Mobikwik surge on NCPI's new UPI transaction charge

Paytm shares jumped 7 per cent to touch a 52-week peak of ₹1,856.50 on the BSE, while rival Mobikwik gained 6 per cent to ₹214 per share, as investors responded positively to the National Payments Corporation of India's announcement of transaction charges on the Unified Payments Interface platform.

The NCPI's decision to introduce levies on UPI transactions represents a significant development for digital payment providers, potentially improving their revenue models and operational viability. The move came as a relief to market participants who have long flagged concerns about the sustainability of free UPI services and their impact on profitability across the sector.

However, not all fintech players benefited equally from the announcement. Pine Labs, another prominent player in the digital payments space, declined 6 per cent to ₹182 per share, suggesting investors hold divergent views on how different companies will be positioned under the new regulatory framework.

Analysts noted that the impact of UPI charges would vary across business models, with payment aggregators and wallet providers like Paytm and Mobikwik potentially positioned to benefit more substantially than traditional payment processors. Market participants are now awaiting further clarity on the implementation timeline and the specific structure of the proposed charges.