One97 Communications Limited, the parent company of crisis-hit Paytm, is shifting its focus to the third-party payment app (TPAP) route to ensure continued availability of its fintech major’s Unified Payments Interface (UPI), as per an ET report.
According to a source familiar with the matter quoted in the report, “Since Paytm Payments Bank will cease to offer payment services, Paytm will transition into a third-party app, integrating UPI services through other financial institutions.”
Consequently, One97 Communications Limited has initiated discussions with the National Payments Corporation of India (NPCI), the entity responsible for overseeing the UPI ecosystem in the country.
Currently, users conducting UPI payments through Paytm have virtual payment addresses (VPAs) ending in “@paytm.” However, starting from March 1, customers may notice a change in their VPAs to those associated with other banks.
Paytm’s UPI service currently operates under the umbrella of Paytm Payments Bank Limited (PPBL). Following the Reserve Bank of India’s (RBI) directive on January 31, PPBL was prohibited from accepting money from customers after February 29.
In response, Paytm plans to collaborate with three or more banks to assign new VPAs for its customers. Axis Bank, HDFC Bank, and Yes Bank are reportedly under consideration for this purpose.
Currently, there are 22 TPAPs functioning on UPI, including Amazon Pay, Google Pay, PhonePe, and others. Banks such as Axis Bank, HDFC Bank, and ICICI Bank support multiple fintech firms through the third-party route. Typically, a VPA comprises elements from both the bank and the fintech brand.
For instance, Google’s prefix for its bank name is “ok” (derived from the phrase “OKGoogle”), while PhonePe’s VPA is issued as “ybl” through Yes Bank.
