Paytm Launches Personalised UPI IDs To Boost Payment Privacy

In an effort to simplify and secure the digital transactions of its users, fintech giant Paytm has rolled out a new personalised UPI IDs feature.

Paytm said in a blog post that the new feature enables users to hide their mobile numbers while sending and receiving money. The feature is currently available for Yes Bank and Axis Bank-issued UPI handles, with plans to expand to other banking partners soon.

The new feature enables custom UPI handles such as name@ptyes or name@ptaxis.

“We heard the feedback from our customers who wanted to keep their mobile numbers private, and built this solution to address that need. We remain committed to developing thoughtful innovations that make payments safer and more convenient for all,” a Paytm spokesperson said.

To set up a personalised UPI ID via Paytm app, users need to tap the profile icon and go on the ‘UPI settings’ option. After clicking on ‘manage UPI ID’, users can choose a personalised ID and activate it for future transactions.

As per the company, this feature launch is part of a broader suite of tools launched by Paytm to enhance user experience. It has rolled out several such features including option to hide or unhide transactions for privacy, monthly expense summary, Auto top-up for Paytm UPI Lite, and more.

This comes on the back of The National Payments Corporation of India (NPCI) discarding the use of special characters in Unified Payments Interface (UPI) identity. As per this decision, any transaction with an ID containing a special character would be declined by the central system. This decision was taken to standardise the UPI ID generation process. 

Paytm’s Cross Border Vision 

In the past one month, Paytm has incorporated two international subsidiaries in UAE and Singapore. This came on the back of  the board of Paytm Cloud Technologies Limited (PCTL) approving the incorporation of the three new subsidiaries in the UAE, Saudi Arabia, and Singapore in January this year.

Besides, Indian travellers can also use Paytm’s UPI services in France, Mauritius, Bhutan, Sri Lanka, and Nepal via UPI International feature.

Recently, the company also infused $2.1 Mn in the UAE subsidiary and onboarded Magnati’s founding CEO Ramana Kumar as the CEO of its Middle East business.

Paytm will focus on the B2B model and partner local players to provide technology solutions under its international expansion plans. During the earnings call for Q4, Vijay Shekhar Sharma said that Paytm’s international expansion will be the key focus in FY25. 

Is Expansion Fueling Profitability Plans For Paytm?

This horizontal as well as vertical expansion comes at a time when Paytm is seeking profitability. 

Sharma expects Paytm to turn profitable in Q1 FY26. Besides international expansion, the company plans to double down on its payments business and scale down its lending business in FY25. 

On the financial front, Paytm reported a net loss of INR 544.6 Cr in Q4 FY25 on the back of  exceptional item loss of INR 522 Cr.  Excluding this loss, Paytm managed to trim its loss to INR 19.9 Cr in the March quarter, from the INR 550.5 Cr loss it posted in the year-ago quarter.

Notably, the exceptional item loss in Q4 FY25 included INR 492.4 Cr in non-cash accelerated charge due to Sharma surrendering 2.1 Cr ESOPs following a SEBI show-cause notice. The company officially settled the case with the regulator on May 8 by paying a penalty of INR 1.1 Cr.

Meanwhile its operating revenue dipped 19% in the quarter under review to INR 1,911.5 Cr from INR 2,267.1 Cr in Q4 FY24.

Shares of Paytm ended today’s trading session at INR 966.15 apiece on the BSE, marginally up from INR 962.50 in its previous close.