Paytm, Axis Bank to submit TPAP application for UPI business with NPCI this week

[Abhishek012]

Paytm, Axis Bank to submit TPAP application for UPI business with NPCI this week:

Paytm is also in discussions with several other banks, including Yes Bank, HDFC Bank, ICICI Bank, and Canara Bank; however, none of the discussions have concluded yet.​

One97 Communications, which runs the Paytm brand, and private sector lender Axis Bank will jointly apply to be a third-party application provider (TPAP) with the National Payments Corporation of India (NPCI) this week for running the mobile payments platform Unified Payments Interface (UPI).

Both parties have been in discussions with NPCI, the entity overseeing and regulating UPI, over the past few days. The application is likely to be formally submitted by both parties with a signed intent to collaborate. NPCI is expected to expedite the process to ensure that customers do not encounter any difficulties using the Paytm app for UPI payments.

Paytm, Axis Bank and NPCI did not respond to Moneycontrol queries on the partnership to be a TPAP player.

Paytm is also in discussions with several other banks, including Yes Bank, HDFC Bank, ICICI Bank, and Canara Bank; however, none of the discussions have concluded yet.

Axis Bank serves as a key payment service provider for major UPI players like Google Pay, Amazon Pay, Cred, and PhonePe. Once approved by the NPCI, Paytm will also function as a TPAP, similar to its competitors. Third-party apps are heavily dependent on PSP banks when it comes to the speed of the payments or even ensuring that payment failures are kept to a minimum. Players like PhonePe and Google Pay typically have at least three bank partnerships to minimise risk.

PPBL has been the largest beneficiary bank in the UPI ecosystem of over the last three years with over 20 percent market share in inbound credit transactions. Despite its scale, it was consistently among the banks with the lowest transaction failures.

 

[tharun]

Paytm, Axis Bank to submit TPAP application for UPI business with NPCI this week:

Paytm is also in discussions with several other banks, including Yes Bank, HDFC Bank, ICICI Bank, and Canara Bank; however, none of the discussions have concluded yet.​

One97 Communications, which runs the Paytm brand, and private sector lender Axis Bank will jointly apply to be a third-party application provider (TPAP) with the National Payments Corporation of India (NPCI) this week for running the mobile payments platform Unified Payments Interface (UPI).

Both parties have been in discussions with NPCI, the entity overseeing and regulating UPI, over the past few days. The application is likely to be formally submitted by both parties with a signed intent to collaborate. NPCI is expected to expedite the process to ensure that customers do not encounter any difficulties using the Paytm app for UPI payments.

Paytm, Axis Bank and NPCI did not respond to Moneycontrol queries on the partnership to be a TPAP player.

Paytm is also in discussions with several other banks, including Yes Bank, HDFC Bank, ICICI Bank, and Canara Bank; however, none of the discussions have concluded yet.

Axis Bank serves as a key payment service provider for major UPI players like Google Pay, Amazon Pay, Cred, and PhonePe. Once approved by the NPCI, Paytm will also function as a TPAP, similar to its competitors. Third-party apps are heavily dependent on PSP banks when it comes to the speed of the payments or even ensuring that payment failures are kept to a minimum. Players like PhonePe and Google Pay typically have at least three bank partnerships to minimise risk.

PPBL has been the largest beneficiary bank in the UPI ecosystem of over the last three years with over 20 percent market share in inbound credit transactions. Despite its scale, it was consistently among the banks with the lowest transaction failures.

As the Paytm Payments Bank cannot accept further credits into its customer accounts and wallets after March 15, 2024, certain additional steps have become necessary to (i) ensure seamless digital payments by UPI customers using ‘@paytm’ handle operated by the Paytm Payments Bank, and (ii) minimise concentration risk in the UPI system by having multiple payment app providers. The additional steps are as follows:

National Payments Corporation of India (NPCI) has been advised by the RBI to examine the request of One97 Communication Ltd (OCL) to become a Third-Party Application Provider (TPAP) for UPI channel for continued UPI operation of the Paytm app, as per the norms.

It has been further advised that in the event of NPCI granting TPAP status to OCL, it may be stipulated that ‘@paytm’ handles are to be migrated in a seamless manner from Paytm Payments Bank to a set of newly identified banks to avoid any disruption. No new users are to be added by the said TPAP until all the existing users are migrated satisfactorily to a new handle.

For seamless migration of ‘@paytm’ handle to other banks, NPCI may facilitate certification of 4-5 banks as Payment Service Provider (PSP) Banks with demonstrated capabilities to process high volume UPI transactions. This is in line with NPCI norms for minimising concentration risk1.

For the merchants using PayTM QR Codes, OCL may open the settlement accounts with one or more PSP Banks (other than Paytm Payments Bank).

3. It is further clarified that:

the migration of UPI handles as above is applicable only to such customers and merchants who have a UPI handle ‘@Paytm’. For others who have a UPI address or handle other than ‘@Paytm’, no action is required to be taken by them.

Similarly, the customers, whose underlying account/ wallet is currently with Paytm Payments Bank, are advised to make alternative arrangement with other banks well before March 15, 2024, as already advised in the FAQs released by RBI on February 16, 2024.

4. It is reiterated that the holders of FASTag and National Common Mobility Cards (NCMC) issued by Paytm Payments Bank, may make alternative arrangements before March 15, 2024 to avoid any inconvenience.

5. All the above actions are undertaken in the sole interest of protecting the customers and payment system from any possible disruptions and are without any prejudice to the regulatory or supervisory actions initiated by RBI against Paytm Payments Bank