The share price of One 97 Communications, the company that operates Paytm is under pressure this morning. However, the company, in a circular disclosed that NPCI’s (National Payments Corporation of India) fee revision would have no impact on revenue such as UPI merchant QR revenue.
NPCI revised fees for TPAP (Third Party Application Provider) and Payer PSP (Payment Service Provider) applicable on RuPay Credit Card on UPI transactions. Paytm noted that NPCI’s revision come into effect from April 1, does not have any impact on merchant revenue. “The circular does not have any impact on merchant MDR (Merchant Discount Rate), as it is priced by the Company for the merchants it acquires,” the company said in its statement.
The fintech added that it derives a large chunk of its payment revenue from merchant payments and maintains a strong position in that segment.
NPCI’s fee revision
NPCI has revised its TPAP fee on consumer payments through RuPay credit cards on UPI. For industry users, the fee has been reduced to 3 basis points from the earlier 4 basis points. Meanwhile, for non-industry users, the fee has been reduced to 6 basis points from 8 basis points.
“This fee is earned by the consumer UPI app for processing consumer transactions as TPAP, and the financial impact of this revision is immaterial for the Company,” the regulatory filing read.
Paytm noted that its payment processing margin for the company’s overall payments business stands comfortably above 4 basis points.
“We continue to see an increase in payment processing margin through the adoption of high-margin payment products by its merchants, such as Paytm Postpaid, EMI, and RuPay Credit Card on UPI, where the Company earns the MDR from merchants,” the fintech said in its statement.
| Segment | Revised TPAP Fee | Previous TPAP Fee | Reduction |
| Industry Transactions | 3 basis points | 4 basis points | 1 basis point |
| Non-Industry Transactions | 6 basis points | 8 basis points | 2 basis points |
One 97 Communications: Share price
The company’s share price was down by more than 1% in the early trading session. Over the past one month, Paytm’s stock has declined by over 11%, while over the past six months the company’s share price has gone down by over 16%.