Relief on the cards for Paytm customers? PhonePe, Google Pay type model being considered by Paytm to keep UPI running

Feb 10, 2024



Relief on cards for paytm customer, Paytm is searching for Third-party payment apps (TPAP) route to ensure seamless access to the Unified Payment Interface (is i) to its users, according to sources familiar with the matter.
Preliminary discussions have begun on this initiative National Payments Corporation of India According to the ET report, (NPCI) is the organization that oversees the UPI ecosystem in the country.
Currently, Paytm users are making UPI payments virtual payment address (VPA) is expiring at @paytm. However, from March 1, these addresses can be transferred to addresses associated with other banks.
Paytm intends to collaborate with three or more banks to issue new VPAs to its customers from next month. HDFC Bank, Axis Bank and Yes Bank are being considered to support both consumer-facing UPI payments and nodal accounts of Paytm merchants.
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The Reserve Bank of India on January 31 directed Paytm Payments Bank to stop all basic payment services, including UPI transactions, from February 29.
For merchant payments, banks may require fresh Know Your Customer (KYC) verification. However, consumers using Paytm for UPI can continue their service with a backend change to the Virtual Payment Address (VPA), sources told the financial daily.
“Since Paytm Payments Bank will stop offering payment services, the Paytm app will become a third-party app going forward, which will integrate UPI through other lenders,” a source was quoted as saying.
Following this instruction, Paytm will convert to a third-party app, which will integrate UPI through other banks, such as platforms like phonepe, on googleAnd on Amazon.
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With 22 third-party payment app providers (TPA) working on UPI, banks like Axis Bank, HDFC Bank and ICICI Bank support many fintechs through this route, often using a mix of their brand names in the payment address. Let's use.
For example, Google uses 'ok' in its bank name as a prefix derived from the phrase 'OkGoogle'. Similarly, PhonePe's Virtual Payment Address (VPA) issued through Yes Bank uses 'ybl'.
Unlike the front-end adjustments required to merchants' payment acceptance infrastructure, the backend process of changing payment addresses for customers can be performed remotely.
However, relying on third-party lenders for the technology backend can create challenges during high payment volumes.



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