Payment Panic: Know Why Paytm, Pine Labs and Other Fintech Shares Slipped 10%

On October 8, 2026, shares of select fintech companies declined by as much as 10 per cent on the NSE. One 97 Communications (Paytm) led the declines as it fell nearly 10  per cent followed by other stocks such as One Mobikwik Systems and Pine Labs. The declines followed an announcement related to the re-introduction of the Merchant Discount Rates (MDR).

Why Are Fintech Shares Falling

According to a report by news agency Reuters, India is likely to delay the rollout of a fee on large transactions made via the Unified Payments Interface (UPI) by a few months. Notably a 0.4 per cent Merchant Discount Rate (MDR) charge for merchants on transactions exceeding Rs 2,000 was recently announced prior to the reported delay in the rollout.

The fee was originally slated to come into effect from October 15, coinciding with the beginning of the festive season in India which typically sees a surge in consumer spending. However, the report states that the rollout is expected to be delayed to January following opposition from retailers and brokers.

One 97 Communications (Paytm)

Shares of One 97 Communications slipped 10 per cent from their intraday peak to hit a session low of Rs 1,558.80 on the NSE. Paytm had gained in recent sessions as D-street factored in the possible revenue upside from processing fees on high value UPI transactions. Notably these transactions form a major share of the company’s gross merchandise value. The delay in MDR implementation stalls this projected revenue boost. Additionally, Paytm’s shares also came under pressure following RBI’s decision to remove Paytm Payments Bank (PPBL) from the list of recognised scheduled banks following the cancellation of its banking licence earlier this year in April.

One Mobikwik Systems

One Mobikwik Systems shares dropped 8.41 per cent to touch an intraday low of Rs 234.52 per share on the NSE. The company has expanded its presence in payment gateway services, offline merchant QR deployments, and financial product cross selling. A framework allowing aggregators to capture a 0.4 per cent MDR on transactions above Rs 2,000 could have potentially led to an improvement in its core payments segment margin. However, the reported deferral delays this anticipated margin accretion, prompting investors to pare their holdings.

Pine Labs

Shares of Pine Labs fell 4.68 per cent to a low of Rs 169.35 per share on the NSE. As a point of sale and merchant checkout infrastructure provider, Pine Labs processes high volumes of in-store transactions. The implementation of an MDR structure was expected to provide a recurring monetisation layer on top of its hardware terminal fees. With the policy deferred ahead of the festive shopping rush, the company loses out on near term transaction fee expansion.

Infibeam Avenues (AvenuesAI)

Infibeam Avenues, operating under the AvenuesAI banner, declined 2.69 per cent from its day's high to touch an intraday low of Rs 15.14 per share on the NSE. Through its CCAvenue digital payment aggregator gateway, the platform processes enterprise scale online volumes. While the company maintains diversified enterprise software contracts, the delayed MDR implementation has delayed the potential margin gains it could have made on web based UPI payment processing.

AGS Transact Technologies

AGS Transact Technologies shed 1.65 per cent to hit an intraday low of Rs 2.37 per share. The company provides omnichannel payment processing, digital merchant acquiring, and automated teller solutions. The deferment of UPI transaction fees postpones the expansion of variable transaction revenue across its digital merchant touchpoints, keeping price action subdued.

At the time of writing, shares of One 97 Communications (Paytm) traded at Rs 1,656.40 per share, down by 4.36 per cent on the NSE. One Mobikwik Systems traded at Rs 238.84, down by 6.68 per cent, while Pine Labs changed hands at Rs 169.77, lower by 4.45 per cent. Infibeam Avenues (AvenuesAI) traded at Rs 15.25, down by 1.99 per cent, and AGS Transact Technologies traded at Rs 2.37, down by 1.66 per cent.