Paytm, Mobikwik shares jump after Rs 2,000 crore UPI incentive announcement

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Shares of digital payments companies rose after the government announced a Rs 2,000 crore incentive scheme for Unified Payments Interface (UPI) and RuPay debit card transactions in the Union Budget 2026.

Shares of One97 Communications Ltd, the parent company of Paytm, surged as much as 5 percent, while One Mobikwik Systems Ltd climbed 4 percent in intraday trade.

The proposed allocation is close to the Rs 2,196 crore subsidy the government is expected to spend in FY25–26, as per revised budget estimates. However, the amount is significantly lower than the industry’s expectation of around Rs 4,500 crore.

Budget documents showed that the actual subsidy outgo for FY24–25 stood at Rs 1,923 crore. The subsidy bill has remained largely unchanged even as the digital payments ecosystem recorded nearly 70 percent growth in transaction volumes.

According to payment companies, the platform requires around Rs 10,000 to Rs 12,000 crore in annual subsidies to support investments in digital infrastructure, ensure seamless payment processing and expand into newer segments.

UPI transactions have continued to scale new highs in both volume and value, with annual growth of around 30 percent. In January, UPI transaction volumes crossed 21 billion, while transaction value exceeded Rs 28 lakh crore.