Paytm Gains 3% In Early Trade After Starting Customer Migration To PSP Banks

Shares of One 97 Communications Ltd, the parent company of Paytm, jumped over 3% to hit INR 404.55 during Thursday’s (April 20) early trading, as compared to its previous close at INR 391.35.

This comes after the company announced that it had received the go-ahead to migrate users to the new Payment System Provider (PSP) bank.

However, the shares lost most of its gains later in the day. At 12: 40 PM on Thursday, the shares were trading at INR 392.65 apiece.

Paytm has started migrating its UPI users to new payment system provider (PSP) bank handles after getting the nod from the National Payment Corporation of India (NPCI).

In an exchange filing on Wednesday (April 17), Paytm said the NPCI gave its nod to migrate the users on Tuesday.

Paytm said it expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank after OCL received the TPAP licence from the NPCI last month.

“All four banks are now operational on the TPAP, streamlining the process for Paytm to shift user accounts to these PSP banks,” the company said.

It also added that by leveraging the robust infrastructure of its banking partners, Paytm would ensure uninterrupted and secure UPI payments for both users and merchants through its app.

It is to be noted that after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank, including halting its UPI facility, Paytm collaborated with several banks to transfer the nodal account of Paytm Payments Bank to them. This move aimed to maintain uninterrupted merchant transactions, similar to before.

During the upheaval since late January, Paytm’s UPI transactions have experienced a downturn. In March, it handled approximately 1.2 Bn UPI transactions, down from 1.3 Bn in February and 1.4 Bn in January.

Concurrently, Paytm’s shares have depreciated by nearly 50% since the onset of issues with the payments bank in late January.