- ByStartupStory | March 1, 2024
Paytm’s parent company, One97 Communications Ltd (OCL), has reportedly inked a deal to shift its merchant accounts to Yes Bank. Paytm is concurrently seeking a third-party application provider license from the National Payment Corporation of India (NPCI) in collaboration with Yes Bank and Axis Bank, according to sources cited by NDTV Profit.
The report anticipates swift approval from the NPCI, as the deal nears finalization, with all requisite documents duly submitted. Upon approval, Yes Bank and Axis Bank are poised to become the primary payment service providers for Paytm’s UPI channel.
UPI, the nation’s real-time payment system managed by the NPCI, witnesses Yes Bank and Axis Bank as major players in the UPI transaction space. Yes Bank leads the charts, processing Rs 34,198 crore of payments and Rs 40,443 crore of receipts—making it the highest among all banks. Axis Bank follows closely, handling Rs 31,831 crore in payments and Rs 16,961 crore in receipt transactions.
Recently, Reuters reported Paytm’s potential collaboration with Axis Bank, HDFC Bank, State Bank of India, and Yes Bank for UPI transactions. The Reserve Bank of India has directed Paytm Payments Bank, the banking arm of Paytm, to conclude its operations by March 15. Last week, the RBI urged NPCI to review Paytm’s request to become a third-party application provider, involving four to five banks as service providers.
Paytm, the third-largest UPI payments app in the country, processes a staggering 1.6 billion monthly transactions, according to NPCI data. Users are slated to transition to an updated UPI handle affiliated with the partner bank, according to Reuters.
In a statement, a Paytm spokesperson remarked, “This strategic move aligns with our commitment to seamless and secure transactions. Yes Bank and Axis Bank’s expertise in the UPI domain positions us to enhance our services and cater to the evolving needs of our vast user base.”
