In a significant move that promises to streamline and enhance user experiences, Paytm, which is owned by One 97 Communications Limited (OCL), has received approval from the National Payments Corporation of India (NPCI) to commence the migration of users to new Payment System Provider (PSP) bank handles.
NPCI had on March 14, 2024, approved to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model. Following the approval, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank.
“All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks,” the company said in an exchange filing.
The company has started transitioning ‘@paytm’ handles users to these banks, ensuring seamless UPI payments. This integration allows Paytm users to create new Virtual Payment Addresses (VPAs) with these partner PSP banks, enhancing the flexibility and security of their transactions.
A Paytm spokesperson said, “We are committed to grow the UPI ecosystem in partnership with NPCI to every nook and corner of India.”
Leveraging the robust infrastructure of its banking partners, the fintech major ensures uninterrupted and secure UPI payments for both users and merchants through the Paytm app.