Paytm May Tap HDFC Bank As Third Merchant Acquiring Partner 

Share via:


SUMMARY

This move will enable HDFC Bank to become the payment service providers (PSPs) for Paytm for its UPI channel

Axis Bank and Yes Bank have already begun operating on the Paytm platform

Paytm secured the Third-Party Application Provider (TPAP) licence from the National Payments Corporation of India (NPCI) on March 14

Paytm’s parent entity One97 Communications Ltd is likely to onboard HDFC Bank as its third partner for migrating merchants on the fintech platform. 

Moneycontrol reported the development first.

These merchants were onboarded on the Paytm app as UPI merchants by Paytm Payments Bank, which was asked by the Reserve Bank of India to shut services such as deposits, credit transactions and FASTag recharges from March 15.

This move will enable HDFC Bank to become the payment service providers (PSPs) for Paytm for its UPI channel. Nearly, 30 Mn merchants are currently active on the platform.

It is pertinent to mention here that Axis Bank and Yes Bank have already begun operating on the Paytm platform. As per media reports, discussions are also underway with Canara Bank and Kotak Mahindra Bank, with Canara Bank expected to roll out operations on the platform as early as next week.

Besides, State Bank of India is also expected to commence operations as payment service provider (PSP) banks for Paytm’s third-party application provider (TPAP) business, which manages the UPI consumer transactions. Paytm currently serves an estimated 90 Mn UPI users on its platform.

Paytm secured the Third-Party Application Provider (TPAP) licence from the National Payments Corporation of India (NPCI) on March 14. 

With the licence, the fintech major can operate UPI services under a multi-bank model.

Paytm has been looking for partnerships with several banks to help its merchants seamlessly continue with Paytm’s offerings.

The RBI has put punitive restrictions on PPBL, but it’s allowing businesses and UPI users to keep using their Paytm handles, QR codes and machines for payments even after March 15. 

Earlier this year the RBI announced a slew of curbs on the payments bank and barred it from taking any deposits, credit transactions, or top-ups in any of its customer accounts for “persistent non-compliance and continued material supervisory concerns”.

In addition, the apex bank barred it from offering other banking services, such as UPI facility and fund transfers, after February 29. Afterwards, it extended the timeline to March 15 for some of the restrictions.





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Popular

More Like this

Paytm May Tap HDFC Bank As Third Merchant Acquiring Partner 


SUMMARY

This move will enable HDFC Bank to become the payment service providers (PSPs) for Paytm for its UPI channel

Axis Bank and Yes Bank have already begun operating on the Paytm platform

Paytm secured the Third-Party Application Provider (TPAP) licence from the National Payments Corporation of India (NPCI) on March 14

Paytm’s parent entity One97 Communications Ltd is likely to onboard HDFC Bank as its third partner for migrating merchants on the fintech platform. 

Moneycontrol reported the development first.

These merchants were onboarded on the Paytm app as UPI merchants by Paytm Payments Bank, which was asked by the Reserve Bank of India to shut services such as deposits, credit transactions and FASTag recharges from March 15.

This move will enable HDFC Bank to become the payment service providers (PSPs) for Paytm for its UPI channel. Nearly, 30 Mn merchants are currently active on the platform.

It is pertinent to mention here that Axis Bank and Yes Bank have already begun operating on the Paytm platform. As per media reports, discussions are also underway with Canara Bank and Kotak Mahindra Bank, with Canara Bank expected to roll out operations on the platform as early as next week.

Besides, State Bank of India is also expected to commence operations as payment service provider (PSP) banks for Paytm’s third-party application provider (TPAP) business, which manages the UPI consumer transactions. Paytm currently serves an estimated 90 Mn UPI users on its platform.

Paytm secured the Third-Party Application Provider (TPAP) licence from the National Payments Corporation of India (NPCI) on March 14. 

With the licence, the fintech major can operate UPI services under a multi-bank model.

Paytm has been looking for partnerships with several banks to help its merchants seamlessly continue with Paytm’s offerings.

The RBI has put punitive restrictions on PPBL, but it’s allowing businesses and UPI users to keep using their Paytm handles, QR codes and machines for payments even after March 15. 

Earlier this year the RBI announced a slew of curbs on the payments bank and barred it from taking any deposits, credit transactions, or top-ups in any of its customer accounts for “persistent non-compliance and continued material supervisory concerns”.

In addition, the apex bank barred it from offering other banking services, such as UPI facility and fund transfers, after February 29. Afterwards, it extended the timeline to March 15 for some of the restrictions.





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Website Upgradation is going on for any glitch kindly connect at office@startupnews.fyi

More like this

Bitcoin prints record monthly candle, filing reveals Trump crypto...

Bitcoin is inching up toward six-figure valuation as...

You can now get an Apple Watch Series 10...

Many Apple Watch buyers have aspirations of improving...

AI chip startup MatX, founded by Google alums, raises...

MatX, a startup designing chips that support large...

Popular

Upcoming Events

Startup Information that matters. Get in your inbox Daily!