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Paytm expects that in its Q2 FY27 financial results, after NPCI sets a 0.4% MDR cap on P2M UPI transactions above 2,000 rupees, its overall payment processing profit margin will increase by about 2.5 basis points; this margin is currently already above 4 basis points. NPCI plans to implement this framework after Diwali, with an MDR cap of 300 rupees on transactions above 75,000 rupees, while P2P UPI remains exempt. Paytm's net profit for the quarter reached 22.5 billion rupees, more than 10 times year-on-year growth, with revenue up 28% to 264.8 billion rupees.
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Paytm expects UPI MDR to bring in Rs 70 crore per fiscal yearDevelopments
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Oct 29
MediaNama
Paytm expects UPI MDR to bring in Rs 70 crore per fiscal year
Paytm Group CFO Madhur Deora said on the Q2 FY27 earnings call that after NPCI imposed a 0.4% MDR on P2M UPI transactions above Rs 2,000, based on the current GMV of Rs 28 trillion, this could bring incremental EBITDA of slightly over Rs 70 crore per fiscal year, potentially reaching Rs 90 crore in FY28. Paytm currently accounts for 8.1% of UPI transaction volume, trailing PhonePe's 45.6% and Google Pay's 32.2%; CEO Vijay Shekhar Sharma said the goal is to capture one-third of the market share.
Oct 27
MediaNama
Paytm: UPI MDR Expected to Boost Payment Processing Margin by About 2.5 Basis Points
In its Q2 FY27 earnings report, Paytm expects that after NPCI sets a 0.4% MDR cap on P2M UPI transactions above Rs 2,000, its overall payment processing margin will increase by about 2.5 basis points; that margin is currently above 4 basis points. NPCI plans to implement the framework after Diwali, with an MDR cap of Rs 300 on transactions above Rs 75,000, while P2P UPI remains exempt. Paytm's net profit for the quarter reached Rs 22.5 billion, up more than 10 times year-on-year, with revenue rising 28% to Rs 264.8 billion.