Paytm, Axis Bank to submit TPAP application for UPI business with NPCI this week

Paytm, Axis Bank to submit TPAP application for UPI business with NPCI this week:

One97 Communications, which runs the Paytm brand, and private sector lender Axis Bank will jointly apply to be a third-party application provider (TPAP) with the National Payments Corporation of India (NPCI) this week for running the mobile payments platform Unified Payments Interface (UPI).

Both parties have been in discussions with NPCI, the entity overseeing and regulating UPI, over the past few days. The application is likely to be formally submitted by both parties with a signed intent to collaborate. NPCI is expected to expedite the process to ensure that customers do not encounter any difficulties using the Paytm app for UPI payments.

Paytm, Axis Bank and NPCI did not respond to Moneycontrol queries on the partnership to be a TPAP player.

Paytm is also in discussions with several other banks, including Yes Bank, HDFC Bank, ICICI Bank, and Canara Bank; however, none of the discussions have concluded yet.

Axis Bank serves as a key payment service provider for major UPI players like Google Pay, Amazon Pay, Cred, and PhonePe. Once approved by the NPCI, Paytm will also function as a TPAP, similar to its competitors. Third-party apps are heavily dependent on PSP banks when it comes to the speed of the payments or even ensuring that payment failures are kept to a minimum. Players like PhonePe and Google Pay typically have at least three bank partnerships to minimise risk.

PPBL has been the largest beneficiary bank in the UPI ecosystem of over the last three years with over 20 percent market share in inbound credit transactions. Despite its scale, it was consistently among the banks with the lowest transaction failures.