Paytm Reports 3% Increase After Customer Transfer to PSP Banks

One 97 Communications Ltd, the parent company of Paytm, saw a 3% increase in its shares, reaching INR 404.55 during early trading on Thursday (April 20), up from its previous close of INR 391.35. This rise followed the announcement that the company had obtained approval to transition users to the new Payment System Provider (PSP) bank. Nevertheless, the shares experienced a significant drop in value later in the day. By 12:40 PM on Thursday, each share was trading at INR 392.65.

Paytm has initiated the migration of its UPI users to a new Payment System Provider (PSP) bank handles following approval from the National Payments Corporation of India (NPCI). The NPCI granted permission for the migration on Tuesday, as stated in an exchange filing by Paytm on Wednesday, April 17.

Related: Paytm Begins User Migration to Different Bank Accounts With NPCI Approval

Paytm announced that it has accelerated the integration process with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank, following OCL’s receipt of the TPAP license from the NPCI last month.

“All four banks are now active on the TPAP platform, making it easier for Paytm to transition user accounts to these PSP banks,” the company stated. It’s worth mentioning that Paytm has stepped up its game by teaming up with strong banking partners to ensure smooth and safe UPI payments for both users and merchants right within its app.

Following the Reserve Bank of India’s (RBI) restrictions on Paytm Payments Bank, which included putting a halt on its UPI services, Paytm swiftly joined forces with multiple banks. Together, they transferred Paytm Payments Bank’s nodal account, ensuring that merchant transactions continue without a hitch, just like they used to. Since late January, Paytm has seen a decrease in its UPI transactions. In March, it processed around 1.2 billion UPI transactions, compared to 1.3 billion in February and 1.4 billion in January. Additionally, Paytm’s shares have declined by almost 50% since the problems with the payments bank started in late January.

One 97 Communications Ltd, the parent company of Paytm, experienced a 3% rise in share value, reaching INR 404.55 early on April 20, after obtaining approval to transition users to a new Payment System Provider (PSP) bank. However, shares later dropped to INR 392.65. Paytm’s proactive approach in collaborating with major banks to enhance its UPI services reflects its commitment to seamless digital payments. Despite challenges in UPI transactions and a significant decline in share value, Paytm’s strategic partnerships and initiatives demonstrate its determination to overcome obstacles and continue providing reliable services to users and merchants.