New Delhi: Amidst the restructuring endeavors prompted by its parent company One97 Communications Limited, Paytm, the embattled fintech entity, is pivoting towards the third-party payment app (TPAP) framework to ensure uninterrupted access to Unified Payments Interface (UPI) services for its user base, as per media reports.
The reported cited a source familiar with the matter, stating, “Since Paytm Payments Bank will cease its payment services, Paytm will transition into a third-party app, thereby integrating UPI services through other financial institutions.”
In line with this strategic realignment, One97 Communications Limited has commenced dialogues with the National Payments Corporation of India (NPCI), the governing body overseeing the UPI ecosystem in India, the source elaborated.
New Virtual Payment Addresses (VPAs) for Paytm Customers Presently, users leveraging Paytm for UPI transactions are assigned virtual payment addresses (VPAs) culminating with “@paytm.” However, post-March 1, customers may witness a transition of their VPAs to those associated with other partner banks.
As Paytm’s UPI operations are under the aegis of Paytm Payments Bank Limited (PPBL), the recent directive from the Reserve Bank of India (RBI) on January 31st has precluded PPBL from accepting deposits from customers beyond February 29th.
Consequently, Paytm is proactively engaging with three or more banks to issue new VPAs for its clientele. Axis Bank, HDFC Bank, and Yes Bank are reportedly under consideration for this purpose, as indicated in the report.
Expanding Landscape of TPAPs in UPI Ecosystem The UPI landscape already accommodates an array of TPAPs, comprising prominent entities such as Amazon Pay, Google Pay, PhonePe, among others. Notably, Axis Bank, HDFC Bank, and ICICI Bank extend support to multiple fintech players through the third-party conduit.
Virtual Payment Addresses issued through TPAPs typically bear a fusion of the bank’s brand nomenclature and the affiliated fintech platform. For instance, Google adopts the prefix “ok” derived from the phrase “OKGoogle,” while PhonePe’s VPA is designated as “ybl” through Yes Bank.
