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Paytm gets NPCI nod to become third-party app provider for UPI

EntrackrEntrackr · 1y ago
Paytm gets NPCI nod to become third-party app provider for UPI
Medial

Paytm has received permission from the National Payments Corporation of India (NPCI) to participate in UPI through the Third-Party Application Provider (TPAP) under the multibank model, as per the fintech company’s filings on the exchange. In a separate release, NPCI stated that four banks – Axis Bank, HDFC Bank, State Bank of India, and Yes Bank – will act as Payment System Providers (PSP). “Yes Bank will also serve as the merchant acquiring bank for existing and new UPI merchants for OCL. The “@Paytm” handle shall be redirected to Yes Bank,” the agency said. This move will enable Paytm users and merchants to continue using UPI services, including autopay mandates, without interruption. OCL (Paytm-parent One 97 Communications) has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks as soon as possible. The announcement comes weeks after the central bank announced a set of additional steps as a follow-up to its actions against Paytm Payments Bank. The steps also included an advisory to NPCI to consider OCL’s request to become a TPAP for the UPI channel. Recently, Paytm discontinued inter-company agreements between the company and Paytm Payments Bank Limited (PPBL). The new move aimed to ensure the independent operations of PPBL, the company added. Earlier, Vijay Shekhar Sharma stepped down from his position as part-time non-executive chairman and board member of PPBL. The company also announced the reconstitution of its board of directors and plans to soon appoint a new chairman. The developments came in the wake of the Reserve Bank of India (RBI) imposing a set of business restrictions on Paytm Payments Bank over non-compliance and regulatory concerns.

PhonePe’s merchant app MAUs on rise as Paytm falls behind

EntrackrEntrackr · 1y ago
PhonePe’s merchant app MAUs on rise as Paytm falls behind
Medial

Digital payments platform PhonePe has managed to eclipse its arch rival Paytm by a decent margin in terms of monthly active users of its merchant app, according to data sourced from App Annie. The data was recorded between mid January to mid March. Paytm lost 20% MAU in the last quarter (between January and March), while PhonePe gained 20% during the same period. Roughly, Paytm’s MAUs stood at 9 million in March whereas PhonePe had around 11 million, as per the data. As of 2023, PhonePe and Paytm had over 37 million registered merchants base each. The recent actions by the Reserve Bank of India against Paytm appears to be the primary reason behind this as the company saw a sharp fall in active users after January this year. To recall, RBI had imposed restrictions on Paytm due to concerns regarding breach of and compliance with regulatory norms in January. However, Paytm later received permission from the National Payments Corporation of India (NPCI) to participate in UPI through the Third-Party Application Provider (TPAP) under the multibank model. This move enabled Paytm users and merchants to continue using UPI services, including autopay mandates, without interruption. A separate report also suggested that RBI’s diktat on Paytm has triggered a major shift in the digital payments landscape for kirana stores. The report citing a survey, conducted by Kirana club, revealed that more than 40% kirana stores have already switched from Paytm to other alternatives such as PhonePe, BharatPe and GooglePay. As per the survey, the exodus was likely to go up in coming months. PhonePe and Paytm did not comment on the story. Besides PhonePe, Khatabook’s merchant app also saw a sharp growth in terms of active users while BharatPe for Merchants remained flat in the past couple of months, as per App Annie data. Interestingly, the active users of Khatabook’s merchant app were inching closer to Paytm as of mid-March. Among the UPI-based consumer facing payments apps, PhonePe is far ahead of its peers and controls nearly 50% market share followed by Google Pay and Paytm Payments Bank with around 35% and 12% market share respectively.

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