A sudden wave of selling hit digital finance companies on Thursday following indications that the timeline for introducing merchant transaction fees on mobile payments may be postponed. The proposed merchant discount rate, initially scheduled to take effect from October 15, is under active review for a postponement until January 1, 2026. While official confirmation from authorities is still awaited, market participants reacted swiftly to the prospect of delayed revenue expansion, driving sharp intraday losses across leading digital payment service providers.
Steep Losses for Key Digital Payment Firms
Equity markets reacted sharply to the prospect of deferred cash flows, which had previously fueled strong buying in the fintech space. On the Bombay Stock Exchange, shares of the parent firm of Paytm plunged by 10 percent to conclude trading at ₹1,560.60. Similarly, Mobikwik tumbled 8.43 percent during the session to settle at ₹234.40.
The selling extended across allied transaction infrastructure providers as well. Pine Labs witnessed its equity shed 4.95 percent to trade at ₹168.75, whereas Network People Services Technologies dropped 4.39 percent to close at ₹1,772.60. Investors clearly trimmed exposure across firms where immediate earnings upsides were closely tied to the new tariff implementation.
Framework of the Proposed Merchant Levies
Under the recently announced framework, transactions exceeding ₹2,000 were slated to attract a merchant discount rate of 0.4 percent. The revenue generated through this levy was intended to go to payment processors and platform operators, compensating them for backend financial routing and settlement architecture. The original unveiling of this mechanism last month had sparked widespread optimism among institutional backers, driving a sharp rally in listed payment networks that were poised to unlock fresh margins from commercial digital flows.
Merchant Feedback Behind the Potential Extension
The reassessment of the mid-October launch stems primarily from representation by traders and retail businesses who requested extra operational buffer to adjust their accounting and billing systems. Authorities and relevant oversight agencies are consequently reviewing whether shifting the timeline to January 1 would provide adequate transition time. Formal regulatory clarification on the rollout schedule is anticipated over the coming days.
