Paytm Share Price: Why Fintech Stock Is Down Today?

Paytm Share Price: Paytm’s parent company, One97 Communications, saw its share price drop by nearly 6% on Wednesday. As of 11:00 am, the stock was trading at Rs 903.25, down Rs 56.95 or 5.93%. It opened at Rs 929.95 and fell to a low of Rs 864.20 in the early trading session.

The fall came after media reports claimed that the government might reintroduce the Merchant Discount Rate (MDR) on UPI transactions above Rs 3,000.

This news created confusion in the market, causing panic among investors. However, the Finance Ministry quickly responded and said the reports were false and misleading.

In a statement on social media platform X, the ministry said, “The speculation and claims that MDR will be charged on UPI transactions are completely false, baseless, and misleading.”

It added that the government is committed to promoting digital payments and will continue to support UPI.

The confusion began after a report claimed the government was considering charging MDR based on transaction value to support banks and payment service providers. This came even though the Payments Council of India had earlier asked the government to review the Zero MDR policy.

The council said that the current policy is not financially sustainable for digital payment players. They suggested a 0.3% MDR for large UPI transactions to help cover operational costs.

Also Read: No MDR on UPI Payments, Says Govt; Labels Charge Claims as Misleading

Paytm Share Price Target 2025

Despite the government’s clarification, Paytm’s stock took a hit. Currently, the company has a low financial strength with a Durability score of 30, meaning it has weak long-term fundamentals.

It also has a Valuation score of just 9, showing the stock is expensive compared to its earnings and book value. However, the Momentum score stands at 63, suggesting the stock still has moderate short-term demand.

Analysts are cautious. According to Trendlyne, out of 17 analysts, the majority have given a “Hold” rating. They expect a small upside of about 2.9% from the current price.

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