The Build: What Went Into Creating MTF3 min read
We didn’t just slap on another feature. Building MTF was like constructing a new highway through existing infrastructure — one that had to be real-time, compliant, margin-aware, and most importantly — user-trust friendly.
Here’s what we crafted:
Instant Margin Simulation
As soon as a user taps “Pay Later,” they instantly see the exact amount needed, available balance, and how much they’re being funded — in real time.
This wasn’t exclusive to MTF — we made sure similar visibility exists on the Delivery tab too, so users can compare easily before placing an order.
Example: Buying a stock at ₹1,467?
- Delivery: ₹1,467 needed
- Pay Later: Just ₹587 needed
Displayed side-by-side — no guesswork.
Transparency in Charges
We built a “+ Charges” breakdown system so users know exactly what they’re paying — brokerage, interest, taxes, all upfront. Zero hidden costs, maximum clarity.
Eligibility Logic & Fallbacks
Not all stocks are MTF-eligible. So we integrated our margin engine deeply to:
- Show only eligible stocks
- Auto-handle edge cases (like illiquid scrips)
- Prevent rejections mid-flow
Modular & Scalable Backend
A robust microservices architecture ensures:
- <200ms response time
- Real-time updates on MTF limits
- MTF Ledger Calculations & Daily Margin statement reports for better visibility
This wasn’t just product UI work. It was a full-stack mission across Product, Engineering, Risk, Compliance, QA, and UX.
Simple Math: How MTF Empowers Traders
Let’s say you want to invest ₹1,00,000 in a trending stock.
Without MTF:
You need to have the full ₹1,00,000.
With Pay Later:
You only pay ~35-40% upfront. So ₹40,000 gives you the same exposure.
Let’s assume:
- Stock grows 5% in 15 days
- Interest cost = ~0.06% per day (i.e., ~₹540 for 15 days)
Your Gain:
- Profit on ₹1L = ₹5,000
- Interest cost = ₹540
- Net profit = ₹4,460
That’s an 11% return on your ₹40K capital in 15 days.
Is it for everyone? No.
Is it powerful for the right investor? Absolutely yes.
Did You Know?
🔹 You can buy MTF stocks without adding extra funds.
Already hold quality stocks? Pledge them and use that as collateral. Combine your collateral margin + funded amount by Paytm Money to invest. This way, you reduce your capital risk significantly.
🔹 We notify you of corporate actions.
If any MTF-held stock undergoes a corporate event — dividend, split, rights issue — we’ll alert you in advance and guide you on next steps.
🔹 Dividends? All yours.
Even though MTF stocks are auto-pledged to us (since they’re funded), all dividends go straight to your bank account. No cuts, no delays.
So check out & explore this feature on the Paytm Money App today.
What’s Next for Pay Later?
We’re just getting started. Coming soon:
- Better MTF Positions & Portfolio Tracking:
View day-wise and overall P&L in real time with more clarity. - Decluttered Orderpad for MTF:
We’re listening to your feedback and simplifying the MTF section so it’s easier to understand while buying. - Inclusion in P&L Calendar:
MTF positions will soon show up as a distinct line item in your profit & loss timeline. - MTF → Delivery Conversion:
One of our most requested features — soon, you’ll be able to convert MTF holdings into delivery positions in just a few taps. - BSE MTF Support:
Today, you can buy 1200+ NSE stocks via MTF. We’re now working on enabling BSE-listed stocks too, significantly expanding your coverage.
Final Thoughts: Building for Trust, Not Just Speed
Building Pay Later wasn’t just about margin funding. It was about enabling more people to trade without fear of missing out due to capital constraints.
We wanted to democratize leverage — but in a way that is controlled, safe, and crystal-clear.
And as someone who has led this product end-to-end, I can proudly say: It’s not just a feature. It’s financial firepower — designed with responsibility.
👋 Let’s Connect
Alpesh Soni
Equity & F&O Product Head — Trading & Investments, Paytm Money
