Paytm clarified that the latest NPCI fee revision on RuPay credit card UPI payments will not affect company revenue. The clarification arrived after market reaction placed pressure on the Paytm share price during early trading.
One 97 Communications, the company behind Paytm, issued a statement explaining the financial impact of the change. The fintech firm stated that the revised charges will not affect UPI merchant QR revenue or merchant MDR earnings.
The National Payments Corporation of India updated fees for TPAP and payer PSP entities linked to RuPay credit card UPI transactions. The revision will take effect from April 1.
Paytm stated that the update relates mainly to consumer UPI app fees. The company confirmed that merchant pricing remains unchanged. Merchant MDR continues under the company’s own pricing model.
NPCI reduced the TPAP fee for industry transactions from 4 basis points to 3 basis points. Non-industry transactions now carry a fee of 6 basis points instead of the earlier 8 basis points.
These charges apply to consumer payment processing through UPI apps. Paytm explained that this revenue portion remains small compared with its core merchant payments business.
The fintech firm highlighted its strong presence in merchant payments. A large share of Paytm payment income comes from merchant transactions across QR codes and digital checkout systems.
Paytm also reported stable payment processing margins. The company stated that its payments business margin stays comfortably above 4 basis points. The NPCI revision therefore creates no meaningful change in financial performance.
The company continues to expand higher margin payment products across its merchant ecosystem. Products such as Paytm Postpaid, EMI payment solutions, and RuPay credit card UPI options support margin growth.
Merchants adopt these products for flexible payment options and faster checkout. Paytm earns merchant MDR from these transactions, which strengthens overall payment revenue.
Market activity still reflected caution. Paytm shares dropped more than one percent during early trade following the news. Investor sentiment remained sensitive after recent stock movement.
Over the last month, Paytm stock declined by more than 11 percent. The six month trend shows a fall of over 16 percent. Despite this decline, the company highlighted stable operational performance within its payments segment.
Industry observers view the NPCI change as a structural update to the UPI ecosystem. Lower processing fees aim to encourage wider adoption of RuPay credit card payments through UPI platforms.
Paytm indicated that the ecosystem expansion could support transaction growth across the network. Higher usage of RuPay credit card UPI payments may strengthen merchant adoption and digital payment volumes.
The fintech company therefore expects continued growth in merchant payment services. Stable merchant MDR and rising adoption of value added payment tools remain central to Paytm’s revenue strategy.
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