Paytm is officially going to end its support for the Payments Bank which has got many people worried about their digital payments. The last date for its operation is March 15, 2024 and the company has finally managed to get a reprieve of sorts which allows the platform to offer UPI payments through its app.
Paytm’s parent company has got the National Payments Corporation of India (NPCI) to sign off on a deal that lets Paytm to operate its UPI service albeit as a third-party application like Google Pay and PhonePe. Being a third-party app means the tech aspect of the platform comes under their purview while the payment operations are handled by the banks.
The new definition means Paytm will rely on Axis Bank, HDFC Bank, State Bank of India (SBI) and Yes Bank to be its payment service provider after March 15. Paytm has relied on its Payments Bank to serve millions of users but the recent notification warrants Paytm to stop its Payments Bank, giving other traditional banks the chance to tap into its resources and serve the customers.
Paytm’s parent company is now being told to migrate the @paytm UPI ID to @Yesbank ID which allows the payments to go through seamlessly without the customer needing to make any change to their settings on the platform. “This will enable existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner,” the release from NPCI states.
While UPI services will be available through other banks, Paytm will not be able to continue offering its FASTag service, and the existing customers have been asked to get from a new FASTag provider to continue using the NFC-based toll payment platform. UPI is a big source of digital payments in India, and Paytm will be hoping the chance to continue as a third-party application will keep its business and customers steady.
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