Paytm initiates transition of customers to new UPI IDs

Paytm has initiated the process of migrating its customers to new UPI IDs in partnership with Axis Bank, HDFC Bank, SBI, and Yes Bank. This move comes after the Reserve Bank of India imposed sanctions on Paytm Payments Bank Limited (PPBL), necessitating the shift away from PPBL as the payment service provider (PSP) bank.

The migration involves nudging Paytm UPI users to provide consent through a pop-up notification for the transition to new UPI IDs, which will now be associated with one of the four partner banks: @ptsbi, @pthdfc, @ptaxis, and @ptyes.

Following approval from the National Payments Corporation of India (NPCI) on March 14, 2024, to onboard One97 Communications Limited (OCL) as a Third-Party Application Provider (TPAP) under the multi-bank model, Paytm has accelerated integration with the partner banks. This approval enables Paytm to continue offering UPI services to its users after the regulatory actions against PPBL.

Paytm's UPI market share had declined to nine percent in March, its lowest level in four years, according to data from NPCI. This decline followed RBI's restrictions on its associate company PPBL in February.

With this migration, Paytm aims to streamline its UPI services and ensure uninterrupted service for its users amidst regulatory changes.