New Delhi:
Paytm users will soon witness a significant change in their UPI experience as the company shifts to partner PSP banks Axis Bank, HDFC Bank, SBI, and Yes Bank.
The Shift: What Users Need to Know
New UPI IDs
Paytm’s parent company One97 Communications has commenced the process of migrating its users to partner banks, facilitating a transition from the previous Paytm Payments Bank-exclusive UPI setup.
RBI Restrictions
With RBI’s stringent regulations affecting Paytm Payments Bank’s operations as a PSP bank, users are now prompted to consent to creating new UPI IDs under @ptsbi, @pthdfc, @ptaxis, or @ptyes.
Understanding PSP Banks
Role of PSPs
PSP banks serve as intermediaries, bridging the gap between UPI apps and the banking network. Given Paytm Payments Bank’s limitations, the transition to other PSP banks becomes imperative.
Integration Accelerates Post-NPCI Approval
NPCI Approval
Following NPCI’s nod as a Third Party Application Provider (TPAP) on March 14, 2024, Paytm swiftly ramped up integration efforts with Axis Bank, HDFC Bank, SBI, and Yes Bank.
Market Dynamics
Paytm’s UPI market share witnessed a decline to 9 percent in March, the lowest in four years.
This dip, down from 11 percent in February, underscores the impact of regulatory actions initiated against Paytm Payments Bank by RBI on January 31.
Stay tuned for seamless transitions and enhanced UPI experiences for Paytm users as the integration progresses.
