NPCI's RuPay credit card fee cut will not impact its overall financial performance: Paytm to exchanges

One 97 Communications, the parent company of fintech platform Paytm, said the National Payments Corporation of India (NPCI) has reduced third-party application provider (TPAP) and Payer PSP (payment service provider) fees on RuPay credit card transactions made via the unified payments interface (UPI), effective April 1, 2026.

The company clarified that the circular relates to “revenue made by consumer UPI apps and has no impact on revenue earned from merchants…”.

With most of its payment revenue coming from merchant transactions, and margins above four basis points, Paytm expects the fee reduction to have a minimal effect on its overall financial performance. The company continues to promote higher-margin products such as Paytm Postpaid, EMI, and RuPay credit cards on UPI to boost monetisation.


Under the new structure, the TPAP fee for consumer payments through RuPay credit cards on UPI has been cut from 8 basis points to 6 basis points for the Non-Industry category, and from 4 basis points to 3 basis points for the Industry category. These categorisations are made to help identify merchants and charge them accordingly.

“This fee is earned by the consumer UPI app for processing consumer transactions as TPAP, and the financial impact of this revision is immaterial for the Company,” One 97 Communications said.

In Q3 FY26, Paytm posted a net profit of Rs 225 crore, reversing a loss of Rs 208 crore in the same period last year. The Noida-based payments company also saw its operating revenue rise 20% to Rs 2,194 crore from Rs 1,828 crore a year earlier.

Meanwhile, a recent Bernstein report noted that Paytm is ahead of rival PhonePe in monetisation, though both firms have comparable business margins. Paytm, with greater control over costs, has achieved profitability, whereas PhonePe remains in the red.