The National Payments Corporation of India (NPCI) has given Paytm permission to move its users' Unified Payments Interface (UPI) based payment services to other banks.
The company started the process of migrating its consumers to the new Payment System Provider (PSP) banks after completing its integration with four major banks: State Bank of India, Yes Bank, HDFC Bank, and Axis Bank.
But in order to maintain the profitability of its payments business, Paytm Payments Bank was forced to move its systems to other banks after the Reserve Bank of India (RBI) ordered it to stop offering fundamental banking services by March 15, 2024.
The four mentioned banks and Paytm were permitted to transition into a Third-Party Application Provider (TPAP) model by NPCI on March 14, 2024. Now that the backend integration is finished, the customer migration process can start. On April 16, 2024, Paytm gained approval from the NPCI to begin the user transfer process. Users using Paytm handles will now all be moved to these banks.
Now that the four banks are up and running on the TPAP, Paytm's procedure of moving user accounts to them is more efficient. This guarantees that Paytm will be able to offer safe and continuous UPI payments via the Paytm app to both customers and merchants.
A third-party application provider, like Paytm, can interact with several banks to offer UPI payment services thanks to the TPAP concept. With this arrangement, the third-party application provider does not need to depend on a single bank or its own payments bank to enroll users and facilitate UPI transactions through the infrastructure of partner banks.
The National Payments Corporation of India (NPCI) developed TPAP, a multi-bank payment service provider API approach, for UPI (Unified Payments Interface) transactions.
In order to provide users with a more trustworthy, secure, and effortless payment experience while following to regulatory requirements and encouraging the expansion of the UPI ecosystem, third-party application providers (like Paytm) can now integrate with multiple banks thanks to TPAP, which is a significant development in the UPI payments landscape.
1. Users of Paytm UPI can now establish new VPAs with affiliated PSP banks.
2. To ensure a seamless switch to the new UPI IDs, the business has begun moving users who use "paytm" to these banks.
3. The new VPAs will have the matching partner bank's pt sbi, pt hdfc, pt axis, and pt yes format.
In 2010, Vijay Shekhar Sharma formed the worldwide financial technology company Paytm.
1. Delivers digital payment services, such as electric bill payment, mobile recharging, and transaction requiring bar codes.
2. Introduced the mobile payment system Paytm Wallet in 2014.
3. Become the first payment app in India to download more than 100 million times in 2017.
4. launched Paytm Payments Bank in 2017, which later ran into legal problems
5. IPO's largest-ever in India, garnering $2.5 billion when it was listed on Indian stock exchanges in 2021.
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