Paytm Reports Minimal Impact from NPCI's Revised UPI Credit Card Fee Structure
One 97 Communications disclosed NPCI's revision of TPAP and Payer PSP fees for RuPay Credit Card on UPI transactions, with fee reductions across categories effective April 1, 2026. The company emphasized minimal financial impact as the changes affect only consumer UPI app revenue, while merchant payments remain unaffected and continue to drive majority revenue.
*this image is generated using AI for illustrative purposes only.
One 97 Communications Limited has informed stock exchanges about NPCI's circular revising TPAP and Payer PSP fees for RuPay Credit Card on UPI transactions, stating the changes will have minimal financial impact on the company.
NPCI Fee Structure Revision
The National Payments Corporation of India (NPCI) issued a circular on March 10, 2026, revising fees applicable to RuPay Credit Card on UPI transactions, effective April 1, 2026. The revision specifically targets Third Party Application Provider (TPAP) and Payer PSP fees for consumer UPI applications.
| Category: | Previous TPAP Fee | Revised TPAP Fee | Reduction |
|---|---|---|---|
| Non-Industry: | 8 basis points | 6 basis points | 2 basis points |
| Industry: | 4 basis points | 3 basis points | 1 basis point |
The revised fee structure allocates fees equally between Payer PSP and App, with 6 basis points each for Non-Industry category (totaling 12 basis points) and 3 basis points each for Industry category (totaling 6 basis points), payable from issuer interchange.
Limited Business Impact
One 97 Communications emphasized that the circular relates exclusively to revenue from consumer UPI apps and does not affect merchant acquiring revenue. The company highlighted several key points regarding the impact:
- The revision does not impact merchant MDR (Merchant Discount Rate), which the company prices for acquired merchants
- Payment processing margin for overall payments business remains comfortably above 4 basis points
- The company continues to see increased payment processing margins through high-margin payment products adoption
- Vast majority of payments revenue comes from merchant payments, where the company maintains strong leadership
Merchant Focus Strategy
The company reiterated its strategic focus on monetization through payment services to merchants. Key revenue drivers include:
- UPI merchant QR revenue (unaffected by the circular)
- High-margin payment products such as Paytm Postpaid, EMI, and RuPay Credit Card on UPI
- Merchant discount rates earned from acquired merchants
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also made the disclosure available on its investor relations website at ir.paytm.com.
Exemptions and Special Categories
The NPCI circular specifies that the revision does not apply to certain transaction categories, including Small Offline Merchants Category where transaction amounts are less than or equal to INR 2,000.00, EMI transactions, AutoPay, and Reserve Pay, where existing fee structures remain unchanged as per previous circulars.
The company concluded that the financial impact of this TPAP fee revision is immaterial, given its strong position in merchant payments and diversified revenue streams from payment processing services.
Historical Stock Returns for One 97 Communications
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.02% | -2.78% | -11.31% | -16.77% | +54.83% | -34.01% |
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