26-Oct-2026 20:52:38
PAYTM Q2: CO EXPECTS 2.5 BPS BOOST IN PAYMENT PROCESSING MARGIN FROM NEW MDR IMPLEMENTATION
• MDR Implementation: NPCI plans to introduce Merchant Discount Rate (MDR) after Diwali 2026, with the effective date yet to be announced • MDR Rate: Proposed charge capped at 0.4% on select payments above ₹2,000 for non-industry merchants • Margin Expansion: Paytm expects approximately 2.5 bps improvement in overall Payments Processing Margin (PPM) • Current Margins: Payments Processing Margin already comfortably above 4 bps, supported by structural improvements • Revenue Opportunity: MDR implementation could generate additional payment processing revenue on eligible merchant transactions • Implementation Timeline: Management expects the actual margin impact to stabilise within 2–3 quarters after implementation • Management Outlook: Further updates expected once regulatory implementation and actual financial impact become clearer
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