Paytm vs Pine Labs: Which stock gets the bigger opportunity from 0.4% UPI MDR?

The end of the zero merchant discount rate (MDR) on select Unified Payments Interface (UPI) transactions is opening a new revenue opportunity for payment companies. From October 15, 2026, a 0.4% MDR will apply to eligible person-to-merchant (P2M) UPI transactions above Rs 2,000, while several smaller and specified transactions will remain outside the full-rate structure.

For companies such as Paytm and Pine Labs, the change could turn some previously non-monetised transactions into a source of revenue. But how much will actually reach their books? That depends on transaction value, exemptions, revenue sharing and the portion of MDR each company can retain.