PAYTM Share Price Jumps 7.2 Percent as Government Considers Adding Merchant Charges on UPI
PAYTM share price jumped after news reports about Indian government's proposal to charge fee for merchants using UPI. This could improve revenue for PAYTM and other payment service platforms. As of the latest trading session, its stock opened at Rs. 660.10, touched a high of Rs. 718.95, and recorded a low of Rs. 651.50, with a closing price of Rs. 713.35. The company commands a market capitalization of Rs. 454.79 billion, with a 52-week high of Rs. 1,062.95 and a low of Rs. 310.00. Recent technical indicators suggest bullish momentum, with investors closely watching key resistance and support levels. However, broader market trends and competitive forces could influence its trajectory.
These merchant fees, commonly known as the Merchant Discount Rate (MDR), are charges that merchants pay to banks for facilitating real-time digital transactions. Currently, UPI and RuPay debit card transactions do not attract MDR, as they are processed through the National Payments Corporation of India (NPCI) without such levies.
According to reports, major merchants in the banking sector have formally petitioned the Union government to reinstate MDR on UPI transactions. The proposal is reportedly under review by the relevant authorities. Under the suggested framework, MDR charges would apply to businesses with an annual turnover exceeding Rs. 40 lakh, as determined by their Goods and Services Tax (GST) filings.
If implemented, this policy shift could reshape the digital payments landscape, potentially boosting revenue streams for payment service providers while increasing transaction costs for large merchants.
Stock Overview
| Metric | Value |
|---|---|
| Open | Rs. 660.10 |
| High | Rs. 718.95 |
| Low | Rs. 651.50 |
| Close | Rs. 713.35 |
| Market Capitalization | Rs. 454.79B |
| 52-Week High | Rs. 1,062.95 |
| 52-Week Low | Rs. 310.00 |
Note: The Price-to-Earnings (P/E) ratio and Dividend Yield are currently not applicable.
Technical Analysis
Candlestick Patterns:
Recent daily candlestick charts indicate a bullish engulfing pattern, which typically signals a reversal to the upside. Increased trading volumes suggest growing investor interest in the stock.
Fibonacci Levels:
Applying Fibonacci retracement from the 52-week high to the recent low provides key levels of interest:
| Fibonacci Level | Price (Rs.) |
|---|---|
| 0.236 Retracement | 600 |
| 0.382 Retracement | 700 |
| 0.618 Retracement | 850 |
The stock currently trades between the 0.382 and 0.618 retracement levels, suggesting a critical phase where investor sentiment could drive the next move.
Support and Resistance Levels:
Traders have identified crucial levels to watch:
| Type | Price (Rs.) |
|---|---|
| Immediate Support | 650 |
| Resistance Zone | 730 - 735 |
| Breakout Target | 765 |
A break above Rs. 735 could set the stage for further upside, while a drop below Rs. 650 may indicate consolidation or downside risk.
Competitive Landscape
Paytm competes in India’s highly competitive digital payments sector, where market dominance is shared among key players:
PhonePe: A widely used UPI-based payments platform that has seen exponential transaction volume growth.
Google Pay: A major player backed by Google, with seamless integration across digital wallets and banking services.
Both competitors have robust ecosystems and continuously introduce new features, intensifying the battle for market share.
