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
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