Paytm Payments Bank (PPBL) has announced that Paytm Wallet can now be used on all UPI QR codes and online merchants. This means that customers with full KYC wallets can make payments on any UPI QR code and online merchant that accepts UPI payments.
Paytm Payments Bank has established itself as the dominant player in the acquisition of UPI payment merchants in India. Moreover, the bank has been recognized as the top UPI beneficiary bank for 21 consecutive months, a testament to its consistent performance in the industry.
Paytm Wallet is now universally acceptable on all UPI QR codes & online merchants as @NPCI_NPCI announces KYC wallet interoperability!
Our associate @PaytmBank is the largest issuer of KYC wallets across India!https://t.co/rzuBWgFBAn
— Paytm (@Paytm) March 27, 2023
Wallet Interoperability Guidelines Announced by NPCI
The National Payments Corporation of India (NPCI) recently introduced guidelines for wallet interoperability. The guidelines, as laid out in circular NPCI/UPI/OC-73/2019-20 and NPCI/UPI/OC-142/2021-22, prioritize equal opportunity for all apps to comply with UPI interoperability as the first principle.
Guidelines for UPI payments interoperability
- UPI payment apps should display the text “Send Money to any UPI App” or “Scan any UPI QR” along with the UPI logo and prominent app logos on send money and QR scan screens. This message should also be included in all customer and merchant communications.
- UPI as a payment option should be visible prominently “over and above” individual UPI apps for merchant payments, especially for online transactions. Standardization of checkout is required for all UPI-based merchant payments (One-time, Autopay, etc.)
- The “Pay by any UPI App” option should provide a generic flow to access all UPI apps, not restricted to any specific app.
- Direct integrations should only be permitted to appear after the “Pay by any UPI App” option.
- For desktop/laptop web-based merchants, the collect option should be transitioned to ‘Dynamic QR’ code before the deadline provided. The “Pay by any UPI App” option should be the first and prominent option before any specific app UPI option or direct integration for this category of merchants as well.
Bank Interchange Revenue Update
Effective immediately, the Bank will earn 1.1% interchange revenue on transactions made by Paytm Wallet customers (i.e., the KYC wallets issued by Paytm Payments Bank) when they make payments to merchants acquired by other payment aggregators or banks.
In addition, the Bank will pay 15 bps of charges for adding more than Rs.2,000 using UPI. However, the Bank will earn 15 bps when any other wallets use the bank to add more than Rs.2,000 using UPI.
Driving Innovation with UPI LITE
Paytm Bank said that it is committed to driving innovation in the industry, and it was the first payments bank to launch UPI LITE, making UPI payments more accessible and convenient for all users.
In February 2023, Paytm Payments Bank registered a staggering 1,657.41 million transactions, further cementing its position as a leader in UPI payments.
Speaking on the announcement, 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.