 "Why are Paytm shares down 4% on NSE today? Check reason here")
Paytm share: Paytm share price today declined 4 per cent to Rs 967.3 per share on the National Stock Exchange (NSE) on Wednesday, January 1, 2025. By comparison, the Nifty50 today was trading 0.4 per cent higher at 23,742 level at 11:35 AM. Paytm is owned by One97 Communications Ltd.
The fall in Paytm share came after the National Payments Corporation of India (NPCI) extended the deadline to implement transaction volume cap on Unified Payments Interface (UPI) apps by two years till December 31, 2026.
"Considering various factors, we, hereby, extend the timeline for compliance of existing third-party application providers (TPAPs) by another two years," NPCI said in its statement on December 31, 2024.
Notably, this is the second time the NPCI has extended the deadline.
Analysts believe the move will benefit market leaders PhonePe and Google Pay, which processed about 47.8 per cent and 37.02 per cent of UPI transaction volumes, respectively, in November, as per NPCI data.
This, they said, may come at the cost of other players’ growth, including Paytm, Navi, Cred, and Amazon Pay.
UPI volume cap history
Back in November, 2020, the NPCI had proposed to cap the volume of transactions that UPI apps can process at 30 per cent. It had given time to the existing players to adhere to the volume cap in two years’ time, i.e. till November 2022. The same deadline has, now, been extended for the second time.
The NPCI’s relief to WhatsApp Pay
In a separate development, the NPCI, on Tuesday, lifted a cap on WhatsApp Pay's UPI product onboarding users, adding to Paytm’s woes.
WhatsApp Pay processed 51.76 million transactions, worth Rs 3,890 crore, in November and ranked 11th among UPI players.
WhatsApp’s messaging service, however, has a base of over 500 million users in India, leaving a large untapped market for growth.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%