Yes Bank, Axis Bank initiate operations on Paytm's UPI platform
What's the story
Yes Bank and Axis Bank have commenced operations on the Paytm app's Unified Payments Interface (UPI) platform, as of today (March 15). This development follows the approval granted to One97 Communications Limited by the National Payments Corporation of India (NPCI), to function as a third-party app on the UPI platform. The launch coincides with the Reserve Bank of India's (RBI) deadline for Paytm Payments Bank Limited (PPBL) to cease all banking operations.
Details
New user registration and handle migration underway
New users registering for UPI on the Paytm app will now receive handles backed by Yes Bank and Axis Bank, replacing the previously used Paytm Payments Bank Limited. Yes Bank has initiated operations with a closed user group under the @ptyes handle, while Axis Bank operates under the @ptaxis handle. Additionally, Yes Bank is tasked with migrating existing @paytm handles, currently used by approximately 90 million UPI users.
More banks incoming
SBI and HDFC Bank set to join Paytm's UPI platform
The State Bank of India (SBI) and HDFC Bank, the country's largest lender and biggest private sector lender respectively, are expected to commence operations on Paytm's UPI platform in the coming days. SBI will operate under the @ptsbi handle, while HDFC Bank will use @pthdfc. These four banks will serve as payment service provider (PSP) banks, linking third-party apps with the banking system.
Insights
Paytm's market share and transaction volume in UPI
Paytm holds an approximate 11% market share in the UPI sector. The platform processes over three billion beneficiary transactions and around 1.6 billion outgoing transactions. The RBI has allowed for a transition period for these new banks to migrate users from PPBL, ensuring the seamless functioning of UPI, the world's largest real-time payment system.