Paytm vs Pine Labs: Which stock can gain more if UPI MDR returns?
A proposed amendment to the Payment and Settlement Systems Act has put UPI merchant discount rate (MDR) back in focus. Jefferies estimates that charging MDR on merchant UPI transactions above Rs 2,000 could create an industry revenue pool of Rs 5,000 crore to Rs 10,000 crore by FY28. Among listed payment companies, it expects Paytm and Pine Labs to be among the biggest beneficiaries.
Both companies reported strong Q1 FY27 earnings. One97 Communications posted its highest-ever quarterly EBITDA as merchant payments, consumer payments and financial services maintained growth.
