Paytm gets a lifeline with third-party license: What this means for you

The third-party application provider license will allow Paytm to facilitate payments through the UPI network, akin to how PhonePe and Google Pay operate

Paytm on Thursday was granted a third-party application provider license by the National Payments Corporation of India (NPCI), just a day before the deadline for Paytm Payments Bank to cease its operations. The license offers Paytm's customers a means to continue using its app for payments following the shutdown of Paytm Payments Bank on March 15.

What does this mean for you?

Paytm app continues for payments: You can still use the Paytm app to make UPI payments even though their banking arm, Paytm Payments Bank, is shutting down several services. 

 

Behind the scenes change: Paytm will now partner with other banks (like Axis, HDFC, SBI, YES Bank) to process your UPI transactions instead of their own bank

For most users, it's seamless: You shouldn't notice a big difference. Keep using the Paytm app for UPI payments like usual

Possible migration in future: Paytm might need to move your existing UPI ID (yourname@paytm) to a new bank account in the future

Overall, this license ensures you can continue using Paytm for UPI payments

Now, officially your Paytm UPI will work!  We have received @NPCI_NPCI approval as Third Party Application Provider under multi-bank model#PaytmKaro pic.twitter.com/6Zxoerpbn3

— Paytm (@Paytm) March 15, 2024