Paytm Explores Third-Party Route for Seamless UPI Access
Paytm, a popular digital payment platform, is gearing up to ensure uninterrupted access to the Unified Payments Interface (UPI) for its users. According to sources, Paytm is considering collaborating with multiple banks to issue new virtual payment addresses (VPAs) for its customers. This move comes in response to recent regulatory changes impacting Paytm Payments Bank, which will halt basic payment services, including UPI transactions, starting February 29.To adapt to this directive, Paytm will transition into a third-party payment app, akin to platforms like PhonePe and Google Pay. This means Paytm users making UPI payments will see changes in their VPAs, which will now be associated with other banks instead of @paytm.
The transition aims to ensure smooth UPI operations for consumers, although merchant payments might require fresh know-your-customer (KYC) verifications. Paytm’s decision to integrate UPI through other banks reflects a common practice among various fintech platforms, which rely on third-party lenders for backend technology support.
While this transition promises continued service for Paytm users, challenges may arise during periods of high payment volumes. Nevertheless, the backend process of changing payment addresses can be executed remotely, offering convenience to users.
Overall, Paytm’s initiative to explore the third-party payment app route demonstrates its commitment to providing seamless digital payment solutions amidst evolving regulatory landscapes.
