Paytm will collaborate with Axis Bank to provide UPI services: Seeks NPCI approval to become TPAP following RBI ban
Pune, 19th February 2024: This week, Paytm and Axis Bank are set to apply to the National Payments Corporation of India (NPCI) to become Third Party Application Providers (TPAP). Approval from NPCI is crucial for Paytm to sustain its UPI service.
Currently, Paytm offers UPI services through Paytm Payment Bank. However, due to a ban imposed by the Reserve Bank of India (RBI) on this bank, users will no longer be able to add funds to their wallets after March 15, rendering services like Fastag and UPI inaccessible.
NPCI’s approval holds significant importance for Paytm in this scenario. One97 Communications, the parent company of Paytm, recently announced a partnership with Axis Bank for merchant payment settlements.
Recent discussions with NPCI
According to reports, both Paytm and Axis Bank have engaged in discussions with NPCI, the regulatory body for UPI, over the past few days. NPCI is expected to expedite the processing of this application to ensure seamless UPI payments for Paytm users.
Similar partnerships with banks for UPI services
Other UPI apps such as Phone Pe and Google Pay also operate as third-party application providers, partnering with Payment Service Provider (PSP) banks for UPI services. Unlike Paytm, these apps require bank partnerships since Paytm Payment Bank itself functions as a bank.
Upon receiving NPCI approval, Paytm will join its competitors as a TPAP, allowing for expanded partnerships and enhanced service reliability in UPI transactions.
