Paytm's decision to migrate its users to partner payment service provider (PSP) banks, including Axis Bank, HDFC Bank, SBI, and Yes Bank, has positively impacted its shares, which rose by 2% in early trade on April 18.
The parent company of Paytm, One 97 Communications Limited, disclosed this information in a filing with the National Stock Exchange (NSE), with the stock trading at Rs 399.10 as of 9:20 AM.
This move follows approval from the National Payments Corporation of India (NPCI) on March 14, allowing Paytm to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model. Paytm has swiftly integrated with the aforementioned banks, streamlining the process of shifting user accounts from Paytm Payments Bank Limited (PPBL) to these PSP banks. Users with '@paytm' handles are being transitioned to these banks, ensuring smooth UPI payments.
The regulatory actions by the Reserve Bank of India (RBI) on January 31 and March 11 imposed business restrictions on Paytm Payments Bank, affecting its ability to accept new deposits, conduct credit transactions, and acquire new customers. Consequently, Paytm's UPI market share declined to nine percent in March, the lowest level in four years, according to data from the National Payments Corporation of India (NCPI).
