New Delhi, March 15, 2024
In a significant development, Yes Bank and Axis Bank have initiated operations on Paytm’s UPI platform. This move comes after the National Payments Corporation of India (NPCI) granted One97 Communications Limited, Paytm’s parent company, approval to function as a third-party app on the UPI network.
What Does This Mean for Users?
New users registering for UPI on the Paytm app will now receive handles backed by these banks instead of Paytm Payments Bank Limited. Specifically:
- Yes Bank has gone live with a closed user group of users under the @ptyes handle.
- Axis Bank operates under the @ptaxis handle.
Additionally, Yes Bank has the additional responsibility of migrating existing @paytm handles to their new system.
RBI’s Deadline and the Changing Landscape
The Reserve Bank of India (RBI) had set a deadline for Paytm Payments Bank Limited to cease all banking operations, which expired today (March 15). Until now, PPBL had been the backend bank powering Paytm’s UPI payments. However, with Yes Bank and Axis Bank stepping in, users can now establish new handles with confidence.
What’s Next?
SBI and HDFC Bank are also expected to go live on the Paytm platform soon. SBI will use the @ptsbi handle, while HDFC Bank will operate under @pthdfc as payment service provider (PSP) banks. Paytm, with approximately 90 million UPI users, holds around 11% market share in UPI transactions, processing billions of beneficiary and outgoing transactions.
As the digital landscape evolves, these developments underscore the importance of fostering a robust ecosystem for seamless digital payments in India. Stay tuned for further updates as more banks join the UPI revolution!
