Paytm's 30 Crore Users May Need 6 Months To Shift To A New Platform


Mohul Ghosh

Mohul Ghosh

Feb 21, 2024


Paytm faces the major challenge of shifting all its 300+ million customers to a new payments partner, a process that industry experts estimate may take anywhere between 3-6 months depending on RBI’s approach. This migration is necessitated by the Reserve Bank barring Paytm Payments Bank (PPB) from onboarding new account holders or enabling credit lines effective March 15th.

Paytm's 30 Crore Users May Need 6 Months To Shift To A New Platform

Senior company executives revealed that Paytm aims to apply for a Third-Party Application Provider (TPAP) license to tie up with leading banks, which would allow its vast user base to continue accessing UPI payments despite the RBI action against its banking arm.

Talks are also underway with banks like Axis, HDFC and SBI to enable issuer partnerships similar to rivals like PhonePe and Google Pay that function as TPAPs currently. Paytm has also opened an escrow account with Axis Bank to ringfence merchant settlements from regulatory uncertainties.

300 Million User Shift Tedious

With PPB serving Paytm’s 300 million+ registered wallet consumers and seeing the third highest UPI marketshare, migration complexity cannot be underestimated despite preparations. Industry observers have warned that given KYC re-onboarding needs, tech integrations required for interoperability and scale, the transition timeline could potentially stretch.

Especially since the RBI has avoided framing specific guidelines so far. However, sources indicate Paytm’s UPI handle ecosystem around its @paytm VPA may continue working for sometime post March 15 based on continuity plans pursued. But PPB linked payment instruments would cease.

Deadline Extended to March 15

Even as uncertainty prevails, the RBI has extended the compliance deadline set for PPB to March 15. This gives Paytm slight breathing room to operationalize interim workarounds before the ban restricting deposits and credit transactions kicks in. The company has asserted there would be no service disruptions for wallet/UPI consumers during this switch over phase.


Mohul Ghosh
Mohul Ghosh
  • 1491 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online