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Following National Payments Corporation of India’s (NPCI) circular asking all KYC wallets (prepaid instruments) to be interoperable on all UPI merchants in offline stores and online apps and websites, Paytm Payments Bank on Monday said its full KYC customers now will be able to able to make payments on every UPI QR code and online merchant where UPI payments are accepted.
In an exchange notification, Paytm said, its associate company Paytm Payments Bank will earn 1.1 per cent interchange revenue when Paytm Wallet customers (i.e., the KYC wallets issued by Paytm Payments Bank) make payment on merchants acquired by other payment aggregators or banks.
“The bank will pay 15 bps of charges for adding more than Rs 2,000 using UPI, and in turn will also earn 15 bps when any other wallets use the bank to add more than Rs 2,000 using UPI”, it said.
In addition to this, One97 Communication will also have a beneficial impact because of this move, in the form of meaningfully lower interchange fees paid to the bank for Paytm wallet since this is now based on the lower standardized interchange.
Paytm Payments Bank is the largest issuer of KYC wallets (prepaid instruments) with over 100 million users.
“We welcome NPCI’s interoperability guidelines that allow Paytm wallet to be used in every nook and corner of the country. This is in line with our mission to bring mobile payments to every Indian everywhere”, said a Paytm spokesperson.
