Discover the groundbreaking partnership between Paytm, HDFC Bank, and Yes Bank, set to revolutionize UPI payments in India! Explore the collaborative efforts shaping the future of digital transactions and stay ahead of the curve with this exclusive update.
Paytm Bridging for Smooth Transitions
One97 Communications, which operates the Paytm brand, along with HDFC Bank and Yes Bank, made a joint application to the National Payments Corporation of India (NPCI) on February 22. They aim to become a third-party application provider (TPAP) for the Unified Payments Interface (UPI), a popular mobile payments platform.
Earlier this week, reports surfaced that Axis Bank and Paytm had also submitted a joint application with NPCI to become a TPAP. These collaborative efforts highlight a shared commitment to enhancing the UPI ecosystem.
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Dialogue and Cooperation
Discussions between these banks and NPCI have been ongoing over the past few days. The objective is to expedite the process to ensure a seamless experience for customers using the Paytm app for UPI payments.
On February 23, the RBI announced plans for a smooth transition for customers and merchants with ‘@paytm’ handles, moving them from PPBL to a new set of identified banks. This proactive approach aims to minimize disruptions and prioritize customer satisfaction.
Despite inquiries from Moneycontrol, responses from Paytm, Axis Bank, HDFC Bank, Yes Bank, and NPCI regarding their TPAP partnership have yet to be received. These ongoing discussions highlight the collaborative efforts underway to facilitate UPI transactions.
Navigating Regulatory Challenges
Restrictive measures imposed by the RBI on PPBL, an associate company of One97, have necessitated the exploration of bank partnerships to sustain Paytm’s UPI business. This underscores the importance of adaptability and resilience in navigating regulatory challenges.
Paytm is also engaged in discussions with ICICI Bank and Canara Bank for potential TPAP partnerships, underscoring the dynamic nature of the digital payments landscape.
PPBL has played a significant role as the PSP bank for One97, boasting a substantial user base of around 90 million UPI users on its platform. Despite regulatory changes, efforts are underway to ensure continuity and stability in the UPI ecosystem.
Once approved by NPCI, Paytm will join its competitors as a TPAP, signaling a new phase of growth and collaboration in the digital payments space. These developments highlight the importance of embracing change and innovation to drive progress.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and Moneycontrol have contributed to the above report
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