India’s Payment Firms Gain as UPI Fee Policy Boosts Revenue Outlook
India's payment firms rise after UPI fee policy change sparks revenue optimism. Paytm, Mobikwik, and Axis Bank see gains.
POLICY WIRE — New Delhi, India — Shares of major Indian payment companies surged on Wednesday following the announcement of a new 0.4% fee on select person-to-merchant transactions exceeding 2,000 rupees ($20) starting October 15.
Paytm, One Mobikwik, Yes Bank, and Axis Bank all saw gains in early trading, with some rising as much as 8%. Pine Labs initially climbed but later reversed to close lower. The move signals a potential shift in how UPI transactions are funded, offering new revenue streams for financial institutions.
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The proposed fee is part of broader legislative changes that aim to adjust India’s zero-merchant-discount-rate policy, which has allowed businesses to accept UPI payments without additional charges since 2020. While the costs of these transactions have been absorbed by banks and payment providers, the new law could allow them to recoup some expenses through fees on larger transactions.
Reporting by Policy-Wire (PW)
