Key Takeaways
- Paytm shares jumped 7.25% and reached a fresh 52-week high.
- More than 7 million Paytm shares changed hands across both exchanges.
- The stock later pared gains as investors booked profits.
Paytm shares rose sharply in early trading on September 16 after a new UPI Merchant Discount Rate framework was announced. One 97 Communications shares climbed 7.25% to ₹1,855.50, setting a fresh 52-week high. The stock later gave up most of its early gains as trading activity remained strong.
Paytm stock climbs after UPI MDR announcement
Paytm shares opened at ₹1,830 on Wednesday and moved higher to an intraday peak of ₹1,855.50. The stock had closed at ₹1,730 in the previous session.
At 9:35 AM IST, Paytm shares were trading near ₹1,743, up 0.75%. By 10:30 AM, the stock was at ₹1,739.50, showing a gain of ₹9.50, or 0.55%, from the previous close.
The stock’s intraday low stood at ₹1,731.10. More than 7 million Paytm shares were traded across the NSE and BSE, reflecting strong activity during the session.
The movement followed the announcement of a new MDR framework for selected UPI merchant payments. Under the framework, a 0.4% MDR will apply to specified person to merchant UPI transactions above ₹2,000 from October 15, 2026.
The announcement drew attention to Paytm because of its merchant payment operations. The framework introduces a charge within the merchant payment ecosystem for eligible transactions that previously operated without a standard MDR.
However, the 0.4% MDR will not directly become 0.4% of Paytm’s revenue for every eligible transaction. The amount will be distributed among participating banks, payment service providers, and UPI application providers. The financial impact on Paytm will depend on its role and the applicable revenue sharing arrangement.
Paytm share price and trading activity remain in focus
The new framework sets a maximum MDR of ₹300 for transactions worth ₹75,000 or more. Separate pricing structures will apply to selected sectors, including railways, telecommunications, insurance, and fuel.
The MDR will be paid within the merchant payment ecosystem. Customers will continue to make person-to-person UPI transactions without the charge. Merchant UPI payments up to ₹2,000 will also remain free under the framework.
For Paytm, investors are assessing the potential revenue contribution from eligible merchant transactions. The company operates a large merchant payments network, making transaction volumes and the share of eligible payments relevant factors for its future revenue from MDR.
The stock’s movement on September 16 showed a sharp early response, followed by a pullback during the trading session. Paytm shares rose from the previous close of ₹1,730 to ₹1,855.50 at the session high before moving back toward ₹1,739.50 by 10:30 AM.
The ₹1,855.50 level marked a new 52-week high for the stock. Trading volume also remained elevated, with more than 7 million shares changing hands across the 2 exchanges.
The new MDR framework is scheduled to take effect on October 15. Until then, Paytm’s share price and trading activity will remain linked to how investors assess the potential financial contribution from eligible UPI merchant transactions.
For Indian business owners tracking digital payments companies, the Paytm movement highlights the direct connection between changes in payment economics and listed payment businesses. The company’s subsequent revenue and transaction data will provide further information on the financial effect of the new MDR framework.
