Axis Bank open to partnering with Paytm for new business: CEO Amitabh Chaudhry

Feb 12, 2024

Mumbai: Talks are underway with Axis Bank, which claims leadership in the merchant acquisition sector Paytm Regarding partnership across Business lines. The bank, which has previously partnered with Paytm, is now discussing new areas of collaboration following the RBI action against Paytm Payments Bank in January.
MD of Axis Bank and ceo Amitabh Choudhary told reporters that any collaboration would be subject to RBI approval. If Paytm has to operate as a bank, it will have to tie up with a bank in place of Paytm Payments Bank, which has been barred by the RBI from most activities after February 29. UPI apps like PhonePe or Google Pay. Axis Bank has emerged as a diversified player in the payments sector following the acquisition of Citibank's card business and fintech company Freecharge.
Apart from backend support for UPI, there are several areas where Paytm Payments Bank is seeking support including Fastag, transit cards and wallets. “The talks focused on individual business aspects, without any strategic discussion,” said Arjun Chaudhary, head of affluent banking, cards and payments at Axis Bank. He did not specify which business areas the bank was in talks with.
On the bank's merchant acquisition business, Chaudhary said merchant payments on UPI have overtaken credit card transactions and are growing at a fast pace, attracting interest from various players. “We will continue to invest in merchant acquiring in both point-of-sale and QR,” he said.
He also mentioned that Axis Bank plans to start replacing Citibank-branded cards with Axis Bank cards from the first half of FY2015 and aims to complete the process in the next financial year. “This will be done in such a way that there is no disruption to the cardholder; the numbers will be retained with standing instructions,” he said.

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