Paytm moves UPI to Axis, YES, HDFC, cuts costs 35%
Business
Paytm just made a big move: by switching from its own Payments Bank to private banks like Axis, Yes, and HDFC, it's managed to drop payment processing costs by around 35%.
This change was triggered by RBI restrictions back in January 2024, forcing Paytm to shift its UPI operations and banking backend.
Revenue fell 20%, profits by FY26
Processing charges fell from around 0.18% of GMV with PPBL to just 0.12% with the new banks.
While Paytm's revenue took around a 20% dip in fiscal 2025 because of the switch, the company saved enough on costs and overheads to cut losses and turn profitable by fiscal 2026.
Paytm also shifted to distributing products like FASTag and Wallet as part of its strategy to stay efficient and competitive.