Paytm prioritises UPI migration: Introduces UPI Lite and RuPay credit card integration for users

Leading online payments platform Paytm is collaborating with banking partners to facilitate a seamless shift to its updated Unified Payments Interface (UPI) platform, which would benefit both merchants and consumers.

According to reports, Paytm has introduced UPI Lite on its app for wallet users, enabling quick and clutter-free small-value UPI payments up to ₹500 per transaction. In addition, Paytm is prioritising the integration of RuPay Credit Cards with UPI, aiming to encourage more frequent credit card usage among customers.

The fintech firm is collaborating with banking partners to facilitate the migration of both merchants and consumers, reports suggest.

One97 Communications Limited, which owns the online payments platform Paytm, began transitioning users to new UPI IDs a few days ago.

In an exchange filing on April 17, One97 Communications Limited announced that it had obtained approval from the National Payment Corporation of India (NPCI) to initiate the migration of users to new Payment System Provider (PSP) bank handles.

After the NPCI’s approval, Paytm moved forward with integrating Axis Bank, HDFC Bank, State Bank of India and YES Bank. In the filing, the company said that all four banks are now operational on the Third-Party Application Provider, or TPAP, platform, facilitating a streamlined process for Paytm to transition user accounts to these PSP banks.

Migrating of customers to new PSP banks was necessitated after the Reserve Bank of India ordered the Paytm payments bank to stop basic banking services by Marc 15, 2024, following supervisory concerns and persistent non-compliance with regulations.

On April 23, the company announced completing the migration of merchant customers from Paytm to the new Payment System Provider (PSP) bank handles.

Shares of One97 Communications Limited, the parent of Paytm, closed 0.99% lower at ₹378.90 apiece on the NSE.