Paytm gets NPCI approval to migrate users to new PSP bank

One 97 Communications Limited (OCL), which owns the Paytm brand, informed the stock exchanges in a filing on Wednesday that it has received approval from NPCI to start migrating users to a new payment system provider (PSP) Bank Account.

Following NPCI’s approval of OCL as a Third Party Application Provider (TPAP) for the Multiple Payment Service Provider API model on March 14, 2024, Paytm has accelerated its integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank, the company said in a release.

“One 97 Communications Limited (OCL), owner of the Paytm brand, India’s leading payments and financial services company and a pioneer in QR codes, speakers and mobile payments, yesterday received approval from the National Payments Corporation of India (NPCI) to start user onboarding Migration to the new payment system provider (PSP) bank will be processed immediately,” the release said.

All four banks are now operating on TPAP, simplifying Paytm’s process of transferring user accounts to these PSP banks.

The company has started transferring “@paytm” user processing to these banks to ensure seamless UPI payments, the release said.

A Paytm spokesperson said: “We are committed to partnering with NPCI to grow the UPI ecosystem to every corner of India.”

Paytm leverages the robust infrastructure of its banking partners to ensure uninterrupted and secure UPI payments by users and merchants through the Paytm app, the release said.

In a filing to the stock exchanges, the company said its communication is a continuation of its earlier letter dated March 14, 2024, in which “we have informed that we have received approval from the National Payments Corporation of India (NPCI) for the company’s participation in UPI as Third Party Application Provider (TPAP) in a multi-bank model”.

Previously, on March 14, NPCI had approved One97 Communications Limited to participate in UPI as a TPAP under the multi-bank model.

The aim is to enable existing users and merchants to continue seamless and uninterrupted UPI transactions and automated payment instructions.

National Payments Corporation of India (NPCI) was established in 2008 as an umbrella organization operating retail payments and settlement systems in India.