Latest news with #MerchantDiscount
Time of India
2 days ago
- Business
- Time of India
Paytm stock price today: Paytm shares crash 10% after finance ministry dismisses MDR on UPI transactions
NEW DELHI: Paytm on Thursday tumbled as much as 10% on Thursday hitting an intraday low of Rs 864.40 on BSE Sensex, after the finance ministry clarified that there are no plans to introduce a Merchant Discount Rate (MDR) on UPI transactions. As of 10 am, Paytm was trading 6% lower, underperforming the broader NSE Nifty 50, which was down just 0.14%. This marks Paytm's steepest single-day drop since February 2024, as investor sentiment took a hit following the official denial. The sharp fall in the stock price of One 97 Communications, Paytm's parent company, came after the finance ministry on Wednesday clarified that reports suggesting MDR charges on UPI payments were "false, baseless, and misleading." "Speculation and claims that the MDR will be charged on UPI transactions are completely false, baseless, and misleading. Such baseless and sensation-creating speculations cause needless uncertainty, fear and suspicion among our citizens. The Government remains fully committed to promoting digital payments via UPI," Finance ministry wrote on X. The clarification came after some media reports suggested the government was considering levying MDR on UPI transactions only for large merchants to support banks and payment providers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Jersey: Gov Will Cover Your Cost To Install Solar If You Live In These Zips SunValue Learn More Undo Earlier in March, the Payments Council of India (PCI), which represents over 180 digital payment firms, urged the government to reconsider the introduction of merchant discount rate (MDR) on UPI transactions and RuPay debit cards. The industry body has sought an MDR of 0.3% on UPI transactions only for large merchants and a nominal MDR on RuPay debit cards for all merchants. The council warned that without MDR, the digital payments infrastructure could become unsustainable, affecting innovation, cybersecurity, and customer support. PCI argued that the policy, in place since January 2020, has put pressure on the payment ecosystem, despite a Rs 1,500 crore government incentive that falls far short of the estimated Rs 10,000 crore needed annually. Members of PCI include major players like Amazon Pay, PhonePe, Paytm, and Razorpay. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Upturn
2 days ago
- Business
- Business Upturn
Paytm shares fall over 10% after government denies reports on MDR charges for UPI
Paytm shares dropped over 10% in early trade after the Ministry of Finance issued a strong denial regarding recent reports that suggested the government was considering introducing a Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) transactions. As of 9:15 AM, the shares were trading 8.09% down at Rs 882.75. The ministry clarified that the reports were 'completely false, baseless, and misleading,' emphasizing that there are no plans to levy MDR on UPI payments. It reiterated its commitment to promoting digital transactions, stating that such misinformation creates 'needless uncertainty, fear and suspicion' among the public. The sharp fall in Paytm's stock reflects investor concerns over the monetisation potential of UPI transactions. MDR is a fee charged to merchants by banks for payment processing. It was waived in 2020 for UPI and RuPay cards to boost digital adoption. While the introduction of MDR could improve revenue for fintech firms, its absence continues to be a profitability challenge. Brokerage UBS, in a note on Paytm's parent company One97 Communications, said the delay or non-introduction of MDR is sentimentally negative for the company. UBS maintains a 'Neutral' rating on the stock with a target price of ₹1,000. Paytm, a major player in the UPI space, has previously highlighted that policy clarity on MDR is key to its payments profitability roadmap. The government's firm stance now puts a near-term brake on these expectations. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
India.com
20-05-2025
- Business
- India.com
Masterstroke by Modi government as UPI users may get discounts on..., for every Rs 100, users will...
UPI payment- File image UPI discount offer: In a matter of great news for users who use Unified Payment Interface (UPI), the central government of India led by PM Modi can give a discount on payment done from UPI. As per a recent report, the Modi government is working on a scheme that will make payment through UPI cheaper than credit cards. Here are all the details you need to know about the recent offer on UPI payment. In order to understand the probable discount on UPI, readers must first understand that there is a fee of 2-3% on the payments made through credit cards, which is called Merchant Discount Rate (MDR). For an example, if the users pay Rs 100 to buy a product or service, the shopkeeper gets only Rs 97-98 due to the Merchant Discount Rate (MDR) which is 2-3% on the payments. More notably, there is no fee on payment through UPI, and as a result, the shopkeeper gets the full payment of Rs 100. The Ministry of Consumer Affairs is considering doing something so that customers who make payments through UPI can get direct benefits. For example, if something is available for Rs 100 through a credit card, then the same thing can be purchased for Rs 98 through UPI. This will further promote UPI and customers will get the benefit of reward for digital payment. However, in the recent update, it has been reported that the Ministry of Consumer Affairs is considering a new scheme to promote UPI payments. Under the new scheme, it is expected that customers who make payments through UPI can get direct benefits. UPI QR codes record fastest growth in digital payments infrastructure In another significant update on UPI, UPI QR codes have recorded the fastest growth in digital payments infrastructure in the financial year 2024-25, with a 91.5 per cent jump over the previous financial year to 657.9 million, according to the latest RBI data. The surge in UPI QR codes was accompanied by a slowdown in the growth rate of credit card transactions to 7.94 per cent year-on-year, while debit card additions registered a mere 2.7 per cent growth to 991 million. (With inputs from agencies)
Reuters
29-04-2025
- Business
- Reuters
Indian authorities keen to charge merchants fees to bolster homegrown payments network, sources say
Summary Companies Small fee is key for investment, UPI growth prospects Fee proposed at 0.2% to 0.3% of transaction value - sources Walmart's PhonePe and Alphabet's Google Pay have previously urged government to allow the fee Average UPI transactions per month have surged to over 17 billion this year from 1.5 billion in 2020 MUMBAI/NEW DELHI, April 29 (Reuters) - India's payments authority, the central bank, and industry are pushing the government to allow a fee on digital payments to large merchants made via its homegrown network to help boost growth, five sources told Reuters. The charge, known as Merchant Discount Rate (MDR), is considered crucial to boosting investment for payments firms, and reviving slowing growth in payments made via the Unified Payments Interface (UPI), India's own network, the sources said. A rate of between 0.2% to 0.3% of the value of each transaction has been suggested, the sources said, which would still be lower than the charges attached to credit and debit card payments. The MDR is usually borne by the merchants, an industry executive said, so will not be passed on to customers. Two of the sources said a final decision on the fee would be made by Prime Minister Narendra Modi's office, but the federal finance ministry supports its implementation. All the sources requested anonymity because the discussions are private. The Prime Minister's office, the Reserve Bank of India, the finance ministry and the National Payments Corporation of India (NPCI) did not immediately respond to emails seeking comment. CASHLESS Modi has sought to reduce the use of cash locally to encourage transparency and formalisation of the economy, including through a controversial 2016 decision to demonetise large value notes. That and the COVID-19 pandemic both helped increase the popularity of digital payments in India. Over the last five years, the average monthly volume of UPI transactions has jumped from about 1.6 billion to over 17 billion currently, according to NPCI data. Last month, Indians made payments worth 24.7 trillion rupees ($289.65 billion) through the UPI network in March, more than a quarter of which went to merchants. But the growth rate of UPI payments has slowed, with the value of monthly transactions growing by an average of about 25% in 2025, down from 35% last year. Walmart-backed PhonePe (WMT.N), opens new tab and Alphabet's GooglePay (GOOGL.O), opens new tab currently dominate UPI payments in India, and have previously called for the MDR to be levied on merchant payments. Both firms did not respond to emails seeking comment for the story. The Payments Council of India (PCI), a lobbying body, has requested the prime minister's office to advocate for a 0.3% MDR on payments to large merchants through UPI, according to a letter reviewed by Reuters. Without the MDR, "it will be very difficult to get the next set of Indians on the digital payments bandwagon," said Vishwas Patel, chairman of the PCI. ($1 = 85.1950 Indian rupees)
