Paytm, Mobikwik Shares Surge on Rs 2,000 Crore UPI Incentive Announcement
Business
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Moneycontrol•01-02-2026, 13:35
Paytm, Mobikwik Shares Surge on Rs 2,000 Crore UPI Incentive Announcement
- •Shares of digital payments companies Paytm and Mobikwik jumped following the government's announcement of a Rs 2,000 crore incentive scheme for UPI and RuPay debit card transactions.
- •One97 Communications Ltd (Paytm's parent) saw its shares surge by 5 percent, while One Mobikwik Systems Ltd climbed 4 percent in intraday trade.
- •The allocated Rs 2,000 crore for FY25-26 is lower than the industry's expectation of around Rs 4,500 crore, despite significant growth in digital payment transaction volumes.
- •Payment companies estimate an annual subsidy of Rs 10,000 to Rs 12,000 crore is needed to support digital infrastructure investments and expansion.
- •UPI transactions continue to grow, with volumes exceeding 21 billion and value surpassing Rs 28 lakh crore in January, showing approximately 30 percent annual growth.
Why It Matters: Government's Rs 2,000 crore UPI incentive boosts Paytm, Mobikwik shares, but falls short of industry expectations.
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