NPCI grants third-party app license to Paytm to perform UPI transactions

Paytm, the leading digital payments platform in India, has been granted a third-party application provider license by the country's payments authority. This development comes as Paytm's banking unit faces regulatory action, compelling the company to explore alternative avenues to continue its operations.

License to ensure seamless payments

The newly acquired license enabled Paytm to serve as a third-party application provider, allowing customers to conduct transactions through India's unified payment interface (UPI). With Paytm Payments Bank slated to cease operations by March 15 due to regulatory non-compliance, the license ensures uninterrupted services for



Paytm users.

Partnerships with leading banks

Axis Bank, HDFC Bank, State Bank of India, and Yes Bank have been designated as payment system provider banks for Paytm, as announced by the National Payments Corporation of India (NPCI). Additionally, Yes Bank will serve as a merchant acquiring bank for both existing and new UPI merchants associated with Paytm.

Migration to new payment system providers

As per NPCI's directive, Paytm is tasked with migrating all existing handles and mandates to the new payment system provider banks at the earliest. This move aims to streamline operations and ensure a smooth transition for Paytm users.