Paytm sees immaterial impact as NPCI cuts RuPay credit card UPI app fees

The latest announcement is out from One 97 Communications Ltd. ( (IN:PAYTM) ).

One 97 Communications Ltd said the National Payments Corporation of India has cut TPAP and payer PSP fees on RuPay credit card transactions made via UPI, reducing app-side revenue from consumer payments but leaving merchant acquiring income untouched. With the bulk of its payments revenue coming from merchant transactions and margins above 4 basis points, Paytm expects the impact of the fee revision on its overall financials to be immaterial while it continues to push higher-margin products like Paytm Postpaid, EMI and RuPay credit cards on UPI to deepen monetisation.

Under the revised structure effective April 1, 2026, TPAP fees for RuPay credit card payments on UPI fall to 6 basis points from 8 for non-industry categories and to 3 from 4 for industry categories, changes that apply to app and payer PSP shares but do not alter merchant MDR that Paytm itself prices. The company emphasised that the NPCI move does not affect UPI merchant QR revenue or small offline merchants under specified thresholds, reinforcing its view that there is no material impact on its payments business or its leadership position in the merchant payments market.

More about One 97 Communications Ltd.

One 97 Communications Limited, which operates under the Paytm brand, is a leading Indian digital payments and financial services company with a strong focus on merchant payments. Its platform spans UPI, QR-based transactions and value-added products such as Paytm Postpaid, EMI and RuPay credit cards on UPI, where it monetises primarily through merchant discount rates and payment services to merchants.

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