QR codes to function as usual, merchants can accept payments beyond Feb 29: Paytm
Some merchants have repayment arrangements set up through the PPBL bank account, as the settlements were being processed there. Now we need to migrate their settlement account to another bank of their choice so that settlements continue to be received and repayments can proceed uninterrupted
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New Delhi: Paytm, the pioneer of QR and mobile payments, on Tuesday announced that its QR codes will continue to function as usual, allowing merchants to accept payments beyond February 29, 2024. Payment devices such as Paytm Soundbox and card machines will also continue to remain operational as always.
Some merchants have repayment arrangements set up through the PPBL bank account, as the settlements were being processed there. Now we need to migrate their settlement account to another bank of their choice so that settlements continue to be received and repayments can proceed uninterrupted.
Now, this migration of Paytm merchants’ settlement account to a bank of their choice will happen at the back-end, a process similar to mobile number portability. It will not impact the merchants and customers on the front-end, said the company. The company is in talks with India’s leading banks and will partner with one of them to ensure that there is no disruption to merchants.
“Over the past two years, Paytm has collaborated with multiple banking partners for a host of services. For services like Paytm QR, where Paytm Payments Bank, acts as a back-end bank, these services will seamlessly transition to other partner bank/s. This means that there will be continued service available to its merchant partners,” a company spokesperson said.
Following an update by the RBI during the Monetary Policy Committee regarding Paytm Payments Bank, the Deputy Governor emphasized that the opportunity for partnership with Paytm Payments Bank will be a prerogative of banks, paving way for ongoing and possible collaboration between Paytm Payments Bank and other banking institutions. Such a partnership will aim to establish a strong framework for offering innovative financial solutions to customers. Paytm management assured that there would be no disruption to merchants and their payment services.
From bustling metropolises to remote rural areas, businesses of all sizes are embracing Paytm's innovative solutions. Merchants from every corner of the country are actively endorsing the Paytm brand, contributing to its stronghold as a leading player in India's payments landscape. These widespread endorsements serve to solidify Paytm's reputation as a trusted partner for businesses nationwide, further cementing its position at the forefront of India's rapidly evolving payments industry.
