Paytm Partners with Axis Bank for UPI Service: Seeks NPCI Approval to Become TPAP

Paytm and Axis Bank will apply to NPCI this fortnight to become third-party application providers (TPAP). If approved, Paytm can resume its UPI service. The news has been reported by Moneycontrol.

Currently, Paytm offers its UPI service through Paytm Payments Bank, but the RBI has imposed a ban on its banking operations. After March 15, users will not be able to add money to their wallets or use UPI services.

In this context, NPCI’s approval is crucial for Paytm. Paytm’s parent company, One97 Communications, recently announced its partnership with Axis Bank for merchant payment settlements as well.

In the past few days, both parties have been in discussions with NPCI regarding the regulation of UPI. According to reports, Paytm users should not face any disruptions in UPI payments, as NPCI can quickly resume its operations on the application, keeping this concern in mind.

Apps like Google Pay and PhonePe also have partnerships with banks.

PhonePe, Google Pay, and similar UPI apps are also third-party application providers. They collaborate with banks as payment service providers (PSPs) for UPI services. However, Paytm does not currently require bank partnerships as Paytm Payments Bank (PPBL) is itself a bank.

After approval, Paytm will also function as a TPAP.

Apps like Google Pay, Amazon Pay, Cred, and PhonePe have partnerships with Axis Bank and others. Considering the risks associated with settlement failures and transaction speed, these applications have opted to collaborate with multiple banks.

After NPCI’s approval, Paytm will also operate as a TPAP, like its competitors.