Analysis · Financial Services

Paytm stock hits all-time high on UPI fee report

By Startup Enthusiast · 11 September 2026

What they do

Paytm is a digital payments and financial services platform offering UPI, recharges, bill payments, and more

Shares rose 3.9% to ₹1,806.25 after reports that UPI fees (MDR) may be set at 40 bps, boosting revenue outlook

Analysts estimate Paytm could add ₹1,320 crore in EBITDA by FY30 (Bernstein) and ₹2,200 crore by FY30 (Jefferies) if the fee materializes

Fintech stocks rallied after a report said the government may set a fee (MDR) of 40 basis points on UPI transactions.
Paytm's stock ended 3.9% higher at ₹1,806.25, touching an all-time high of ₹1,829.50 during the day.
The government amended the PSSA 2007 to remove the ban on charging fees for UPI payments.
The fee would apply only to person-to-merchant (P2M) transactions, not person-to-person (P2P) transfers.
Transactions below a turnover threshold of about ₹1 crore to ₹1.5 crore would be exempt.
UPI apps (TPAPs) would receive about 30% of the MDR, or 12 basis points of the transaction value.
Jefferies estimated the revenue pool for payment platforms at ₹5,000-10,000 crore in FY28.
Bernstein projected Paytm could add ₹1,320 crore to EBITDA with a 35 bps MDR on a subset of UPI transactions.

The government's move to allow UPI fees marks a major policy shift, as UPI has been free for users and merchants.
The stock surge reflects investor optimism about improved profitability for fintech firms.

Paytm offers UPI payments, recharges, bill payments, flight booking, credit cards, and insurance.
It runs Paytm Money, an investment platform.
Paytm provides business payment solutions including QR codes, Soundbox, and card machines.
The company operates primarily in India, serving both consumers and merchants.
It generates revenue through transaction fees, commissions, and financial services.