One 97 Communications ( OCL ), the parent company of Paytm, has received authorization from the National Payments Corporation of India ( NPCI ) to transfer users to alternative banks for UPI transactions.
This development follows NPCI’s approval in March for OCL to function as a Third-Party Application Provider ( TPAP ) within a multi-bank framework. NPCI’s endorsement enables Paytm to maintain UPI services through its partnered banks.
This strategic shift arises from previous constraints placed on Paytm Payments Bank. The company intends to capitalize on the robust infrastructure of its new banking partners to ensure the security of UPI transactions. According to a statement in a stock exchange filing, Paytm has swiftly integrated with Axis Bank, HDFC Bank, State Bank of India ( SBI ), and YES Bank following NPCI’s approval on March 14, 2024, to onboard OCL as a TPAP under the Multi Payment Service Provider API Model. These four banks are now operational on the TPAP platform, simplifying the process for Paytm to transition user accounts to these PSP banks.
Paytm will migrate its customers from Paytm Payments Bank to accounts with four prominent banks: Axis Bank, HDFC Bank, State Bank of India ( SBI ), and YES Bank. This transition promises Paytm users a smooth experience with continued access to UPI payments and AutoPay mandates. Leveraging the robust infrastructure of its new banking partners, Paytm ensures secure UPI transactions throughout this migration process.
Once users are migrated to another partner payment service provider bank, their current UPI ID with ‘@paytm’ will transition to a new UPI ID with one of the following: @ptsbi, @pthdfc, @ptaxis, or @ptyes. This seamless transition is designed to ensure uninterrupted UPI transactions for both users and merchants, with users holding “@paytm” handles being migrated first.
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