27 March 2024 – Amidst the shifting landscape of digital payments in India, Paytm, the country’s leading mobile payment provider, is poised to onboard HDFC Bank as its newest partner for merchant acquisition. This strategic move comes in the aftermath of regulatory directives impacting Paytm’s banking arm and underscores the company’s commitment to ensuring seamless services for its vast network of merchants and consumers.
Following the Reserve Bank of India’s mandate for Paytm Payments Bank Limited (PPBL) to halt banking operations, Paytm swiftly initiated discussions with various banking partners to facilitate the migration of merchants to alternative platforms. Axis Bank and Yes Bank have already integrated with Paytm’s system, paving the way for the smooth transition of merchants previously associated with PPBL. Now, with HDFC Bank set to join as the third merchant acquiring partner, Paytm aims to fortify its merchant acquisition capabilities and maintain uninterrupted services.
Additionally, Paytm is also in talks with Canara Bank and Kotak Mahindra Bank, with Canara Bank expected to finalize its partnership soon. Simultaneously, HDFC Bank and State Bank of India (SBI) are poised to go live this week as payment service providers for Paytm’s UPI consumer business, further expanding the company’s reach in the digital payments ecosystem.
Despite the regulatory challenges faced by PPBL, the RBI’s allowance for continued use of merchant accounts, QR codes, and PoS machines associated with the platform ensures minimal disruption in payment operations. Paytm’s proactive approach in securing partnerships with multiple banks underscores its commitment to providing reliable and efficient payment solutions to millions of users across India.
