Online payment and financial services Paytm announced on May 3 that it is providing a cashback of 100 on all UPI payments made through its payment app. 

“Paytm is India’s favourite payment app! 🚀 Now, better with power of 4 banks Get assured 100 cashback on UPI payments using Paytm app,” the firm said in a post on social media X.

The online payment company introduced this cashback offer following its approval from the National Payment Corporation of India (NPCI) to initiate the immediate migration of users to new Payment System Provider (PSP) bank handles in March.

Also read: Paytm completes merchant migration to new UPI ids

After receiving approval from NPCI on March 14, 2024, to enlist OCL as a Third-Party Application Provider (TPAP) within the Multi Payment Service Provider API Model, Paytm has hastened the integration process with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are now active participants on the TPAP, facilitating a smoother transition for Paytm to migrate user accounts to these PSP banks.

On April 22, Paytm founder Vijay Shekhar Sharma announced the successful migration of merchant customers from Paytm to the new Payment System Provider (PSP) bank handles.

During a virtual press conference to introduce the new sound box, Sharma stated that Yes Bank, as one of the PSP banks, has the authority to determine whether it wishes to carry out further due diligence on the merchants that have been transitioned.

“Migration of merchants has been completed and the system is running with Yes Bank as the back end,” said Sharma.

Also read: Paytm Money: Rakesh Singh to replace Varun Sridhar as CEO of One97 Communications’ arm, says report

In the new procedure, Paytm users will be redirected to PSP banks such as Axis Bank, HDFC Bank, SBI, and Yes Bank. A PSP serves as a banking intermediary facilitating connectivity between the UPI application and the banking network. Only financial institutions are authorized to serve as PSPs.

In February, Sharma resigned from his positions as non-executive chairman and board member of Paytm Payments Bank in compliance with the RBI’s directive. Additionally, the company restructured the bank’s board by appointing a new chairman and incorporating other external board members.

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Published: 03 May 2024, 09:22 PM IST