Paytm Payments Bank transfers bill payment operations to Euronet Services

Euronet processed around 19 million consumer bill payments in March, marking a significant increase from 4.6 million in January, driven by the agreement with Paytm

Paytm Payments Bank (PPBL) has transferred its bill payment operations to Euronet Services India after it recently shifted its retail point of sales operations to RBL Bank and the settlement of merchant payments to Axis Bank.

Euronet, an American payment technology company, manages backend settlement systems for various digital payment methods in India.

The Economic Times (ET) cited a source as saying that following the directive for Paytm Payments Bank to cease its services, they needed to transition to another provider, with Euronet assuming control of the business.

Following the partnership, PPBL will now process bill payments through Euronet. Bharat Billpay, a subsidiary of the National Payments Corporation of India, facilitates the backend infrastructure for most bill payments in India.

Consumer bill payments by Euronet

Bharat Billpay's data showed that Euronet processed around 19 million consumer bill payments in March, a significant increase from 4.6 million in January, driven by the agreement with Paytm. Meanwhile, bill payments on PPBL decreased to 2.7 million from 16 million in January, representing an 83 per cent fall.

The report cited a source as saying, "As a settlement platform, banks make a commission for every bill payment done through Bharat Billpay; for Paytm, that revenue source will get reduced since it will only make a small commission as a sourcing entity for the bill payment transaction."

Bharat Billpay's commission system

Bharat Billpay has a detailed interchange or commission system for bill settlements, which varies depending on the type of bill. For example, gas, electricity, and water bills incur an interchange fee of Rs 2.25, while Fastag recharges entail an interchange fee of 0.15 per cent.

The business challenges encountered by PPBL have had repercussions on the fintech company Paytm, owned by One 97 Communications (OCL), which holds a 49 per cent stake in PPBL. 

Paytm has recently witnessed the departure of some senior executives. Paytm announced on Saturday that Bhavesh Gupta, the chief operating officer (COO), has resigned and will transition to an advisory role within the CEO's office. Additionally, the company said Ajay Vikram Singh and Bipin Kaul, both chief business officers overseeing distinct business units, have also tendered their resignations. Last month, PPBL chief executive officer (CEO) Surinder Chawla had stepped down.