One 97 Communications Limited (OCL), owner of the Paytm brand, has received approval from NPCI to begin user migration to the payment system provider's (PSP) new banking arrangements, the company said in the stock markets Wednesday in a presentation.
Following NPCI's approval on March 14, 2024 to bring OCL on board as a Third Party Application Provider (TPAP) in the Multi Payment Service Provider API model, Paytm has accelerated integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank, the company said in a press release.
“One 97 Communications Limited (OCL), owner of the Paytm brand, India's leading payments and financial services company and pioneer of QR, sound box and mobile payments, yesterday received an advance from the National Payment Corporation of India (NPCI) to begin user migration to the new Payment System Provider (PSP) bank is being handled immediately,” the statement said.
All four banks are already operational on the TPAP, streamlining the process for Paytm to transfer user accounts to these PSP banks.
The company has started transitioning from '@paytm' managing users to these banks, ensuring seamless UPI payments, the statement said.
“We are committed to growing the UPI ecosystem in partnership with NPCI to every nook and corner of India,” a Paytm spokesperson said.
Leveraging the robust infrastructure of its banking partners, Paytm ensures seamless and secure UPI payments for both users and merchants through the Paytm app, the statement said.
In its filing to the stock exchanges, the company said its communication continues with the earlier letter dated March 14, 2024, in which “we had informed about the receipt of approval from the National Payment Corporation of India (NPCI) to the Company to participate in UPI as a Third Party Application Provider (TPAP) in multi-bank mode.”
Earlier on March 14, NPCI had approved One97 Communications Limited's participation in UPI as TPAP under the multi-bank model.
This agreement was made to enable existing users and merchants to continue making UPI transactions and automatic payment mandates seamlessly and uninterrupted.
The National Payments Corporation of India (NPCI) was incorporated in 2008 as an umbrella organization to operate retail payment and settlement systems in India.
