Paytm shares remained in the green for the most part on Tuesday even as several of its peers in the new-age tech stocks category including Nykaa, Zomato, and Delhivery saw shares slumping.
What Happened: Shares of the fintech giant are upbeat as the company informed that after NPCI‘s
regulatory update on KYC wallet interoperability, its Paytm Wallet will now be accepted on all UPI QRs and online merchants.
This also means that the company will earn a 1.1% interchange revenue when Paytm Wallet customers (i.e.,
the KYC wallets issued by Paytm Payments Bank) make payments on merchants acquired by other payment aggregators or banks.
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Reacting to the news global analyst firm Morgan Stanley said that if the change is well received by Paytm wallet users or merchants, it would have a significant impact on the company, as Paytm Payments Bank is the largest issuer of KYC wallets with over 100 million users.
The analysts also highlighted that with the new changes the company will have to pay a 15 basis points charge for adding more than ₹2,000 to the wallet through other banks. Currently, there is no charge for such transactions.
The firm maintained its ‘equalweight’ rating on the stock with a price target of ₹695 – an around 11% upside from the stock’s last closing price of ₹621.30.
Price Action: Shares of Paytm were down 0.61% to trade at ₹617.50 at market close on Tuesday.
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