Paytm Share Price Surges 2% as Customer Migration Begins to PSP Banks
Paytm share price rose by 2% in early trade on April 18, trading at 399.10 as of 9:20 AM, following the announcement of the firm starting to shift its users to new Payment System Provider (PSP) banks.
This announcement was made by One 97 Communications Limited, the parent company of Paytm, in a filing with the National Stock Exchange (NSE). Paytm has announced that it has initiated the process of migrating its customers to partner payment service provider (PSP) banks, including Axis Bank, HDFC Bank, SBI, and Yes Bank, instead of it’s own Paytm Payments Bank Limited (PPBL).
This move comes after receiving approval from the National Payments Corporation of India (NPCI) on March 14.
Paytm said, "Following NPCI's approval on March 14, 2024, to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks. The company has started transitioning ‘@paytm’ handles users to these banks, ensuring seamless UPI payments."
Read March Surge: Why Yes Bank Shares Spiked?
Following a tumultuous announcement On January 31, 2024, the Reserve Bank of India (RBI) imposed business restrictions on Paytm Payments Bank, preventing it from accepting new deposits and conducting credit transactions after February 29 due to "persistent non-compliance and continued material supervisory concerns in the bank." and, on March 11, the RBI prohibited Paytm Payments Bank from acquiring new customers.
As a result of these actions by the RBI, Paytm's unified payments interface (UPI) market share dropped to nine percent in March, according to data from the National Payments Corporation of India (NCPI). This marks the lowest level in the last four years.
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