Paytm Payments Bank wallets can now be used across UPI QRs, online

Paytm Payments Bank  said its 100 million-plus users can now use their wallets to make payments to every UPI QR code and online merchant where UPI payments are accepted.

The service will only be available on full-KYC wallets, the company said in a filing with the Bombay Stock Exchange.

Paytm Payments Bank will earn a 1.1% interchange fee when its customers make payments on merchants acquired by other payment aggregators or banks.

The company said the bank will pay 15 bps (basis points) of charges for adding more than Rs 2,000 and will also earn 15 bps when any other wallets use the bank to add more than Rs 2,000. One bps equals 0.01%.

"...this move presents incredible growth opportunities for India’s payment ecosystem. In line with the Reserve Bank of India's (RBI) mission of making ‘Har Payment Digital’, we are the largest acquirer for UPI merchant payments," a Paytm Payments Bank spokesperson said.

Paytm Payments Bank says it registered 1,657.41 million transactions in February 2023.

Paytm's parent company, One97 Communications, recently received an extension from the RBI to resubmit its application for a payment aggregator license.

The RBI said that Paytm must apply for a payment aggregator license within the next 15 days. However, the letter also stated that if the Indian government makes an unfavourable decision, the central bank must be notified right away.