Paytm think Tie Up With SBI, Yes Bank, Others For UPI Transactions

Paytm's parent company, One 97 Communications, is reportedly in talks with major banks like SBI, Yes Bank, Axis Bank, and HDFC Bank to secure its UPI future. This move comes as Paytm seeks a crucial third-party app provider (TPAP) license from the National Payments Corporation of India (NPCI).

The transition is expected to be smooth, with users retaining their "paytm" handles. However, these handles might eventually redirect to one of the partner banks for settlement purposes, instead of Paytm Payments Bank (PPBL).

This development comes ahead of the March 15 deadline for restrictions imposed by the RBI on PPBL. Paytm is actively working with NPCI and will officially announce partner banks upon receiving the TPAP license.

Here's a breakdown of the key points:

• New Partners: Paytm is exploring partnerships with major banks to settle UPI transactions as a TPAP.

• Paytm Handle Revamp: While user handles might remain "@paytm", the underlying bank for settlements could change.

• NPCI License Crucial: Obtaining the TPAP license from NPCI is essential for Paytm to continue offering UPI services.

• Seamless Transition: Paytm assures users the transition will be gradual and minimize disruption.

• Merchant Impact: Paytm merchants will reportedly remain unaffected by the banking partnerships.

• Stock Market Jitters: Paytm's parent company's stock price has dipped ahead of the March 15 deadline.

This move by Paytm highlights the evolving landscape of UPI payments in India. Securing partnerships with established banks could ensure a smooth transition for Paytm and its users. However, the potential change in settlement banks under the "paytm" handle might require user awareness campaigns to avoid confusion.