Discussions on Paytm to switch to third party app mode to keep UPI has been started with the National Payments Corporation of India (NPCI), one of the persons said. NPCI runs the UPI ecosystem in the county.
One 97 Communications, which runs payment application Paytm, is focussing on the third-party payment app (TPAP) route to ensure that the Unified Payments Interface (UPI) remains open for its users, people aware of the matter .
Currently, those using Paytm to make UPI payments have virtual payment addresses (VPAs) ending in @paytm.
The Reserve Bank of India ordered Paytm Payments Bank on January 31 to stop all basic payment services through various platforms and technology railroads, including UPI, from February 29.
After March 1, customers might find this changing to some other bank’s handle.
Paytm aims to use three or more banks to start issuing new VPAs to its customers from next month, said the people cited above. HDFC Bank, Axis Bank and Yes Bank are in contention for the consumer-facing UPI payments business of Paytm, just like they are looking to support the nodal accounts of its merchants.
Paytm Payments Bank is also in talks to transfer the nodal accounts of Paytm merchants to other lenders. One of the persons cited above said that this will only happen after the regulator issues detailed FAQs on the matter, as the RBI governor said on Thursday.
Also read: Instagram, Threads to start limiting the political content
){kind=link}