Online payments and financial service Paytm on May 3 announced that it is offering ₹100 cashback on all UPI payments made through its payments app.
“Paytm is India’s favorite payments app! 🚀Now, better with the power of 4 banks, ensure ₹100 cashback on UPI payments using Paytm app,” the firm said on social media.
The online payments company introduced this cashback offer after it received approval from the National Payments Corporation of India (NPCI) in March to start instant transfer of users to new payment system provider (PSP) bank handles.
After receiving approval from NPCI on March 14, 2024, to list OCL as a Third-Party Application Provider (TPAP) within the Multi Payment Service Provider API model, Paytm has joined Axis Bank, HDFC Bank, State Bank of India The integration process has been accelerated. (SBI), and Yes Bank. All four banks are now active partners on TPAP, making it easier for Paytm to transfer user accounts to these PSP banks.
On April 22, Paytm founder Vijay Shekhar Sharma announced the successful migration of merchant customers from Paytm to the new payment system provider (PSP) bank handle.
During a virtual press conference to introduce the new sound box, Sharma said that Yes Bank, as one of the PSP banks, reserves the right to determine whether it wants to conduct further due diligence on transitioning merchants. Sharma said, “The migration of merchants has been completed and the system is running considering Yes Bank as the backend.”
In the new process, Paytm users will be redirected to PSP banks like Axis Bank, HDFC Bank, SBI and Yes Bank. A PSP acts as a banking intermediary that facilitates connectivity between the UPI application and the banking network. Only financial institutions are authorized to serve as PSPs.
In February, Sharma resigned as non-executive chairman and board member of Paytm Payments Bank in compliance with the RBI directive. Additionally, the company reconstituted the bank’s board by appointing a new chairman and inducting other external board members.
