UPI free ride halts Paytm stock rise
The finance ministry’s clarification last week that there will be no imposition of Merchant Discount Rate (MDR) will not be applicable on payments made through Unified Payment Interface or UPI had again put a question mark on the sustainability of the payment gateway industry.
No wonder, the performance of Paytm stock (One97 Communications) – the only listed payment gateway company – has been wobbly since the finance ministry’s denial. The Paytm stock had been rising steadily since March, when it hit a recent low of around Rs 650 to around Rs 960 before that the ‘no imposition of MDR’ clarification came. The stock has fallen around 10% since then to close at Rs 877.30 on Monday.
