Merchant customer migration to new UPI IDs from Paytm completed: Vijay Shekhar Sharma

Paytm on April 22 launched two Made-in-India sound boxes for UPI and credit card on UPI payments.

The migration of merchant customer accounts from Paytm to other unified payments interface (UPI) handles is completed, said Vijay Shekhar Sharma, Managing Director (MD), Paytm. “After we received the approval from National Payments Corporation of India (NPCI), the migration of customer accounts is completed,” Sharma said in a webinar on April 22.

"Migration of merchants has been completed and the system is running with Yes Bank as the back end," Sharma added.

One97 Communications Limited (OCL), which runs Paytm, On April 17 had started the customer migration to partner payment service provider (PSP) banks Axis Bank, HDFC Bank, SBI and Yes Bank. A PSP is a bank that helps the UPI app to connect with the banking channel. Only banks can act as PSPs.

Sharma additionally said that they have resumed co-lending business and are looking at new partnerships. "We have resumed our co-lending business and we are looking at new partnerships," Sharma said.

Also read: Paytm starts migrating customers to new UPI IDs

The Paytm UPI customers were until now using Paytm Payments Bank Limited (PPBL), an associate company of OCL as the PSP bank, which became untenable after RBI’s crippling sanctions on PPBL.

All Paytm UPI users will be nudged for consent with a pop-up notification for using Paytm with a new UPI ID with one of the four handles like @ptsbi, @pthdfc, @ptaxis and @ptyes.

"Following NPCI's approval on March 14, 2024, to onboard OCL as a Third- Party Application Provider (TPAP), 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 a statement to stock exchanges.

NPCI on March 14 granted approval to OCL to participate in UPI services as a TPAP under the multi-bank model. The much-awaited license would allow Paytm to continue offering UPI services to its app users, after its banking unit PPBL ceased operations post-March 15 following regulatory action.

New soundbox launch

Paytm on April 22 launched two Made-in-India sound boxes for UPI and credit card on UPI payments. Sharma said that the advanced soundboxes offer better sound quality and battery life, making them better suited to Indian conditions.

The need for these hybrid soundboxes was felt in the backdrop of a high-noise environment in India, Sharma said, describing the evolution of the company's soundbox offerings as 'legitimate India innovations'.