Paytm begins customer migration to new UPI IDs after NPCI approval; what it means?

One 97 Communications Limited (OCL), which operates under the brand name Paytm, has received approval from the National Payment Corporation of India (NPCI) to migrate users to new Payment System Provider (PSP) bank handles for unified payments interface (UPI) payments. This comes after NPCI allowed OCL to operate as a Third-Party Application Provider or TPAP under a multi-bank model in March.

What does it mean for Paytm users?

Paytm is migrating its users from Paytm Payments Bank Limited (PPBL) to State Bank of India (SBI), Axis Bank, HDFC Bank and Yes Bank.

"All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks," the company said in a regulatory filing.

After the transition to these banks, the current UPI ID of Paytm users with '@paytm' will change to one of the following UPI IDs: @ptsbi, @pthdfc, @ptaxis, and @ptyes.

The new arrangement is important as the Reserve Bank of India (RBI) has barred PPBL from onboarding new customers and accepting fresh deposits.

PPBL is 51% owned by the company's founder, Vijay Shekhar Sharma, and 49% by OCL.

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The mobile payments and financial services company said it is committed to growing the UPI ecosystem in India in partnership with NPCI. "Leveraging the robust infrastructure of its banking partners, Paytm ensures uninterrupted and secure UPI payments for both users and merchants through the Paytm app," it added.

The shares of Paytm were trading at ₹392, reflecting a gain of 0.3%, on the National Stock Exchange (NSE) on Thursday at 11:20 am. Intraday, the stock hit a high of ₹409. The scrip closed at ₹391 on Wednesday. The total market capitalisation of the company is at ₹24,948 crore, while the free float market capitalisation is ₹11,486 crore.