Paytm Starts User Migration to Partner Banks for UPI Services Amid Regulatory Challenges

Paytm User Migration: In response to regulatory hurdles faced by Paytm Payments Bank Limited (PPBL), One97 Communications Limited (OCL), the operator of Paytm, has initiated a significant migration process for its UPI users. The move, aimed at complying with RBI directives, involves transitioning users to partner payment service provider (PSP) banks, including Axis Bank, HDFC Bank, SBI, and Yes Bank.

Previously, Paytm UPI customers relied on PPBL for their transactions. However, with regulatory actions impacting PPBL's operations, OCL has swiftly adapted by facilitating a seamless transition for its users to continue accessing UPI services without interruption.

This migration follows NPCI's approval of OCL as a Third-Party Application Provider (TPAP) within the multi-bank UPI model, allowing Paytm to maintain its UPI offerings despite PPBL's operational cessation.

Despite these efforts, Paytm has experienced a decline in its UPI market share, dropping to nine per cent in March, its lowest level in four years, according to NPCI data. This decline follows RBI's stringent actions against PPBL in February 2024 due to identified non-compliances.

Nevertheless, Paytm remains committed to serving its user base effectively amidst regulatory challenges, ensuring compliance with standards while safeguarding customer interests. The migration to partner PSP banks signifies a pivotal step in this ongoing effort.