As National Payments Corporation of India (NPCI) announced Wallet interoperability guidelines, One97 Communications Limited-owned Paytm Payments Bank Limited on Monday said that from now on its KYC wallet customers can make payments on every UPI QR code and online merchant where UPI payments are accepted.
Paytm said that the Bank will earn 1.1 per cent interchange revenue when Paytm Wallet customers (i.e., the KYC wallets issued by Paytm Payments Bank) make payment on merchants acquired by other payment aggregators or banks.
NPCI’s guidelines allowed full interoperability of KYC wallets (pre-paid instruments) on all UPI merchants in offline stores and online apps/websites.
Paytm Payments Bank will pay 15 bps of charges for adding more than Rs 2,000 via UPI, and will further earn 15 bps when any other wallets use the bank to add more than Rs 2,000 using UPI, the company said in a statement.
Paytm Payments Bank Spokesperson said, “We welcome NPCI’s interoperability guidelines that allows Paytm Wallet to be used in every nook and corner of the country. This is in line with our mission to bring mobile payments to every Indian everywhere. As the pioneer of mobile payments and QR based payments, this move presents incredible growth opportunities for India’s payment ecosystem. In line with RBI’s mission of making ‘Har Payment Digital’, we are the largest acquirer for UPI merchant payments.”
Paytm Payments Bank is also the top UPI beneficiary bank for 21 months in a row and has registered 1,657.41 million transactions in February 2023.
Recently, Paytm Payments Bank Limited enabled UPI LITE, a feature enabled by the NPCI for several small UPI transactions.
Meanwhile, the Paytm Payments Services Limited (PPSL) has received an extension of time from the Reserve Bank of India (RBI) to resubmit its application for a Payment Aggregator (PA) license.
Also Read: RBI allows Paytm Payments to continue online Payment Aggregator business as it awaits govt approval