Paytm UPI Service to Resemble Google Pay and PhonePe, Launching After March 15
Paytm will officially stop supporting the payments bank, which has made many people worried about their digital payments. The last date is March 15, 2024, and the company has finally managed to get a reprieve of sorts, allowing the platform to offer UPI payments through its app.
Paytm’s parent company has got the National Payments Corporation of India (NPCI) to sign an agreement that will allow Paytm to use its UPI service, albeit as a third-party app like Google Pay and PhonePe. A third-party application means that the technical side of the platform falls under their jurisdiction when the banks handle the payment functions.
The new definition means that Paytm will rely on Axis Bank, HDFC Bank, State Bank of India (SBI) and Yes Bank as its payment service providers after March 15. Paytm has relied on its Payments Bank to serve millions of users, but a recent announcement ensures that Paytm will discontinue its Payments Bank and allow other traditional banks to leverage its resources and serve customers.
Paytm’s parent company is now advised to migrate @paytm UPI ID to @Yesbank ID, enabling seamless payments without the need for the customer to make any changes to their platform settings. “This allows existing users and merchants to continue to perform UPI transactions and AutoPay authorizations seamlessly and without interruption,” the NPCI release said.
While UPI services are available through other banks, Paytm cannot continue to offer FASTag service and existing customers have been asked by the new FASTag service provider to continue using the NFC-based toll platform. UPI is a big source of digital payments in India, and Paytm hopes that the option to continue as a third-party app will keep its business and customers stable.
