One97 Communications Limited, the parent firm of crisis-hit Paytm, is focusing on the third-party payment app (TPAP) route to ensure that the fintech major’s Unified Payments Interface (UPI) remains available to its users, according to an Economic Times report.
“Since Paytm Payments Bank will stop offering payment services, Paytm will become a third-party app going forward, integrating UPI through other lenders,” the reported quoted a person aware of the development, as saying.
Accordingly, One97 Communications Limited has initiated discussions with the National Payments Corporation of India (NPCI), which runs the UPI ecosystem in the country, the person added.
Three or more banks to issue new VPAs to Paytm customers
Currently, people using Paytm for UPI payments, have virtual payment addresses (VPAs) ending in @paytm. After March 1, however, customers might find this VPA changing to some other bank’s handle.
The fintech giant’s UPI service falls under the Paytm Payments Bank Limited (PPBL); on January 31, PPBL was barred by the Reserve Bank of India (RBI) from taking money from customers after February 29.
And, therefore, Paytm aims to use three or more banks for new VPAs for its customers. Axis Bank, HDFC Bank, and Yes Bank are in contention for the same, as per the report.
Already there are as many as 22 TPAPs working on UPI, including those of Amazon Pay, Google Pay, PhonePe, and others. Axis Bank, HDFC Bank, and ICICI Bank support multiple fintechs through the third-party route. A typical VPA is a mix of the brand name of both the bank and the fintech.
Google, for example, uses ‘ok’ (taken from the phrase ‘OKGoogle) as a prefix to the bank name, while PhonePe’s address is issued as ‘ybl’ through Yes Bank.