India’s National Payments Corporation of India (NPCI) has granted One97 Communications Limited (OCL), the parent company of Paytm, permission to function as a Third-Party Application Provider (TPAP) on the Unified Payments Interface (UPI) leveraging a multi-bank model.
This milestone development empowers Paytm to offer UPI payment services through a network of partner banks, mirroring the approach of competitors like PhonePe and Google Pay. Previously, Paytm relied solely on its subsidiary, Paytm Payments Bank Ltd., for UPI transactions.
Key Takeaways:
- Multi-Bank Model: Paytm transitions away from its single-bank partnership, enabling broader reach and potentially enhanced services.
- Seamless User Experience: Existing users and merchants can continue using UPI and AutoPay features uninterrupted.
- New Partner Banks: Axis Bank, HDFC Bank, State Bank of India, and YES Bank will serve as Payment System Providers (PSPs) for OCL.
- Yes Bank as Merchant Acquirer: Yes Bank will handle merchant acquiring for both existing and new Paytm UPI merchants.
- Migration Process: OCL will undertake the migration of existing user accounts and mandates to the new partner banks.
This approval signifies a significant shift for Paytm, fostering a more diversified and potentially more competitive landscape within the Indian digital payments’ ecosystem.
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