Paytm and Axis Bank will apply to NPCI this week to become Third Party Application Providers (TPAP). If they get its approval then Paytm will be able to continue its UPI service. Money Control has published a report regarding this.
Currently Paytm provides its UPI service through Paytm Payment Bank, but RBI has banned this bank of Paytm. After March 15, users will neither be able to add money to the wallet to use services like Fastag nor will UPI work.
In this context, NPCI's approval is very important for Paytm. Paytm's parent company One97 Communications had also recently said that it has also partnered with Axis Bank for settlement of merchant payments.
According to the report, both the parties have been in discussion with NPCI, the body that regulates UPI, for the last few days. Keeping in mind that Paytm users do not face any problem in UPI payment, NPCI can work on this application quickly.
UPI apps like PhonePe, GooglePay are also third party application providers. They have a partnership with Payment Service Provider (PSP) banks for UPI service. However, Paytm did not yet need a bank partnership as PPBL itself is a bank.
UPI apps like GooglePay, AmazonPay, Cred and PhonePe have partnerships with Axis Bank and others. Keeping in mind the risks related to payment failure and transaction speed, these apps partner with more than one bank.
After the approval of NPCI, Paytm will also work as TPAP like its competitors.
