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Time of India
a day ago
- Business
- Time of India
Centre's no MDR stance derails fintech's UPI monetisation plans
Live Events The Ministry of Finance's clarification that there was no plan to reintroduce the merchant discount rate (MDR) on payments done via Unified Payments Interface has dampened the monetisation plans that payment firms had around the popular payment of listed payment firms fell Thursday, a day after the ministry said speculations about the return of the fee for processing UPI payments were 'completely false, baseless and misleading'. One 97 Communications , which runs the payment platform Paytm , closed 6.8% lower at Rs 895.15 on the BSE. One Mobikwik Systems, which operates the Mobikwik application, ended 2.6% down at Rs 274.15.'It will be business as usual since we have been operating without MDR for a few years now. But there was hope in the industry that MDR would be brought back at least for big-ticket transactions; now that is gone,' the chief executive of a major payment processor said on the condition of anonymity.A senior banker who leads the payments function at a private sector lender pointed out that once the government has got the merchant ecosystem used to free digital payments, bringing back the system was always going to be a the last two months, the industry circle was abuzz with conversations around the government seriously considering bringing back MDR, but only for large purchases.'Obviously, we do not know much, and we will not like to predict how the government is looking at it, but we definitely see talks of MDR coming on UPI,' Paytm chief executive Vijay Shekhar Sharma said during the company's FY25 analyst call. He said it could help in building monetisation opportunities from the core payments business for firms like insiders also pointed out that fintech firms have been encouraging customers to move to instruments like mobile wallets or prepaid payment instruments (PPIs) and credit cards, which are MDR generating instruments.'MDR on PPI-UPI, something that is already in motion from the RBI and it is under discussion in the payments ecosystem across multiple industry players and should go live soon. From our perspective, it will definitely bring a new source of revenue, which today we are not getting,' Mobikwik cofounder Bipin Preet Singh said during the FY25 analyst listed firms were talking about projected revenue opportunities, the ministry clarification on MDR could have an impact on fintech IPOs lined up for the coming reported on May 19 that PhonePe gets 95% of its revenue from digital payments and UPI payments is a core aspect of that business. The company is in the process of filing for an IPO in the second half of the current year. Merchant payments company Pine Labs, which is set to file its draft IPO papers this month, gets a significant share of payments via UPI. For Razorpay, another company planning to go public by 2026, UPI accounts for a significant chunk of business.'We have seen almost all forms of innovation and new investments stop in the core payments business. There was hope in the industry that some of it would come back, but it seems that is also gone,' said the founder of another payments firm.
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Business Standard
20-05-2025
- Business
- Business Standard
One Mobikwik share price slips 6% on posting Q4 results; here's why
One Mobikwik share price slipped 5.9 per cent in trade, logging an intraday low at ₹262 per share on BSE. The selling pressure came after the company posted its Q4 results. At 10:10 AM, One Mobikwik shares were down 1.22 per cent at ₹275.2 per share on the BSE. In comparison, the BSE Sensex was down 0.19 per cent at 81,905.25. The market capitalisation of the company stood at ₹2,137.93 crore. The 52-week high of the stock was at ₹698.3 per share and the 52-week low of the stock was at ₹226.85 per share. One Mobikwik Q4 results The company released its fourth quarter (Q4FY25) results on Monday, after market hours. The consolidated net loss for the quarter stood at ₹56.04 crore as compared to a loss of ₹0.67 crore year-on-year (Y-o-Y). The company's revenue from operations in Q4 stood at ₹267.8 crore as against ₹265 crore a year ago, up 1.1 per cent. The company's user base stood at 176.4 million with 4.4 million new users onboarded in this quarter. Payments gross merchandise value (GMV) grew over 2.3x Y-o-Y in Q4FY25, reaching ₹33,100 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) loss was incurred at ₹45.8 crore, due to lower contribution margins, even as the fixed costs reduced Q-o-Q. ALSO READ | "Our Payments Business has shown remarkable strength, growing threefold year-over-year. Our focus for this year will be to leverage AI as a growth catalyst - to accelerate go-to-market, drive revenue growth, and expand margins through intelligent automation," said Upasana Taku, executive director, co-founder & CFO, One MobiKwik Systems. About One Mobikwik One MobiKwik Systems Ltd. (MobiKwik) is a digital wallet service that offers a wide range of payments and financial products to both consumers and merchants. The company, founded by Bipin Preet Singh and Upasana Taku in 2009, today offers various payment products such as MobiKwik Wallet, UPI, Pocket UPI, and Zaakpay (payment gateway), serving 176.4 Mn+ registered users and 4.6 Mn+ merchants. The company has expanded into the distribution of financial products ranging from credit (MobiKwik ZIP, ZIP EMI), savings & investment (Fixed Deposits, Mutual Funds, Digital Gold, and insurance products on its platform.
