Mumbai, Sept. 16 -- India's decision to introduce a merchant discount rate on UPI person-to-merchant transactions above Rs 2,000 has prompted brokerages to sharply raise their earnings and valuation assumptions for One 97 Communications (Paytm), with analysts describing the move as the point at which UPI acquiring stops being a subsidised utility and becomes a commercial business.

Emkay Global raised its target price on Paytm by 41.2 per cent to Rs 2,400 from Rs 1,700, maintaining a BUY rating, implying an upside of close to 39 per cent over the September 15 close of Rs 1,731. The brokerage estimates UPI MDR revenue of about Rs 1,120 crore for Paytm in FY28 on deliberately conservative assumptions of a 10 basis point realised take-rate, ...