Paytm hits upper-circuit for second consecutive session, stock trading at 389.20

Mar18,2024



New Delhi: Part of One97 Communicationsparent company of PaytmUpper circuit was held for the second consecutive session on Monday. The stock rose 18.50, or 4.99%, to 389.20, for a total rise of 11% in two sessions after receiving approval from the National Payments Corporation of India (NPCI) Add is i As a third party application provider under the multi-bank model.
Morgan Stanley maintained its equal weight stance with a target price of Rs 555, viewing this development positively and in line with expectations. Impact on Paytm Business in February and transfer of Paytm Payment Bank business to other banks are areas of interest for the firm.
Four banks including Axis Bank, HDFC Bank, State Bank of India and Yes Bank will act as payment system provider banks for One97 Communications. Yes Bank will also act as a merchant acquiring bank for UPI merchants, with the '@Paytm' handle to be redirected to Yes Bank, according to the company's filing on Thursday.
The move ensures continuity in UPI transactions and autopay mandate for existing users and merchants.
NPCI has advised Paytm to expeditiously transfer all existing handles and mandates to the new PSP banks. tpap The approval marks the resolution of the final regulatory challenge for a seamless transition for customers and merchants, as highlighted Jefferies,
The brokerage said due to the potential loss of banking license, Paytm's business model is expected to resemble pure payment service providers like PhonePe and Google Pay, leading to closer collaboration with banks and regulated entities.



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