Paytm has completed the migration of merchant customer accounts from its payment bank to other unified payments interface (UPI) after it received a go-ahead from the National Payments Corporation of India (NPCI).
On April 17, One97 Communications Limited (OCL), which runs Paytm, started the customer migration to partner with payment service provider (PSP) banks Axis Bank, HDFC Bank, SBI and Yes Bank. A PSP is a bank that helps the UPI app to connect with the banking channel. Only banks can act as PSPs.
The merchant migration was done after Paytm Payments Bank was stopped from accepting additional credits into its customer accounts and wallets. RBI, on January 31, directed PPBL to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29. The deadline was later extended to March 15. The central bank’s order cited persistent non-compliance and continued material supervisory concerns.
Since March 15, Paytm has been functioning as a third-party application provider (TPAP) and not as a payments bank app.
Last week, Paytm said: “Following NPCI’s approval on March 14, 2024, to onboard OCL as a third-party application provider (TPAP) on the Multi Payment Service Provider API Model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks.”
What are the updated UPI handles?
The users’ current UPI IDs with “@paytm” will be replaced with these new IDs:
> SBI UPI handle: @ptsbi
> HDFC Bank UPI handle: @pthdfc
> Axis Bank UPI handle: @ptaxis
> Yes Bank UPI handle: @ptyes
Paytm clarified: “YES Bank will also act as a merchant acquiring bank for our existing and new UPI merchants. The “@Paytm” handle will be redirected to YES Bank. This will enable our existing users and merchants to continue to do UPI transactions and AutoPay mandates in a seamless and uninterrupted manner.”
How can you activate new ids
As per news reports, Paytm has initiated the process of transitioning users with the ‘@paytm’ UPI handle to these banks, thereby facilitating uninterrupted UPI transactions.
As per a company’s press release, all four banks are fully operational on the Third-Party Application Provider (TPAP) platform, simplifying Paytm’s procedure for transferring user accounts to these Payment Service Provider (PSP) banks.
Paytm UPI users have started receiving “important UPI alerts” on their app, prompting them to commence the transition to the UPI handles associated with one of the four banks.
Once a user clicks on the UPI update, he/she can follow the instructions to activate the new UPI ID on the Paytm app. Clicking on the UPI update allows users to follow instructions for activating the new UPI ID on the Paytm app.