Paytm shares climb after government announces 0.4% P2M UPI MDR
Paytm's stock shot up more than 7% on Wednesday after the government said it will start charging a 0.4% merchant discount rate (MDR) on person-to-merchant (P2M) UPI payments above ₹2,000 from October 15.
This ends almost six years of free merchant UPI transactions for payments above ₹2,000, and Paytm expects additional revenue from the merchant business for many of the payment transactions that were free earlier.
Paytm shares hit 52-week high ₹1,856.50
Paytm's shares hit a 52-week high at ₹1,856.50 as hopes rose for more revenue from these fees, which only apply to person-to-merchant (P2M) UPI transactions above ₹2,000 and are capped at ₹300 for transactions worth ₹75,000 or more.
The Finance Ministry reassured everyone that regular person-to-person UPI transfers will stay free, so your usual money-sending habits aren't changing anytime soon.