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Paytm Share Price Today: Paytm shares surge 5% after third-party application provider approval for UPI: What does it mean for shareholders? | India Business News
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Paytm share price today: Shares of One97 Communications witnessed a significant jump of 5% to Rs 370.90 on the Bombay Stock Exchange on Friday. This follows the announcement that the National Payments Corporation of India (NPCI) has granted approval to Paytm to operate as a Third-Party Application Provider (TPAP) under the multi-bank model for UPI transactions.
Axis, HDFC, SBI, and YES Bank will serve as payment service providers under this approval, with YES Bank also acting as the merchant acquiring bank for both existing and new UPI merchants.
Paytm stock ended the day at Rs 370.70, representing a 5.00% increase on the BSE.
NPCI stated that YES Bank will serve as the merchant acquiring bank for both existing and new UPI merchants associated with Paytm. The “@Paytm” handle will be redirected to YES Bank, ensuring uninterrupted UPI transactions and AutoPay mandates for existing users and merchants.
ALSO READ | Closing Paytm Payments Bank FASTag account: Here’s how you can check and manage your Paytm FASTag status
NPCI has also advised Paytm to promptly migrate all existing handles and mandates to new payment service provider (PSP) banks.
The TPAP approval marks the resolution of the last regulatory hurdle for Paytm, ensuring a smooth transition for its customers and merchants, ET quoted Jefferies as saying.
With the possibility of losing access to a banking license, Paytm’s business model will align more closely with pure payment service providers such as PhonePe, Google Pay, and Pine Labs, as noted by the brokerage. It is expected to pursue stronger collaboration with banks and regulated entities. Additionally, the brokerage highlighted that without further regulatory restrictions, the business could evolve in various directions based on user and merchant retention.
The statement further emphasised the significance of the lending business’s path to normalisation, which has experienced partial suspension. This will offer insights into the revenue/EBITDA trajectory. Positive and negative risks are expected from factors such as user/merchant retention, revenue generation, and cost management. Clarity on attrition numbers and the normalisation process for the lending business will be closely monitored.
Morgan Stanley mentioned its expectation of updates regarding the potential impact on Paytm’s businesses in February. It also awaits revised commercials for Paytm as the business of Paytm Payment Bank transitions to other banks.
Axis, HDFC, SBI, and YES Bank will serve as payment service providers under this approval, with YES Bank also acting as the merchant acquiring bank for both existing and new UPI merchants.
Paytm stock ended the day at Rs 370.70, representing a 5.00% increase on the BSE.
NPCI stated that YES Bank will serve as the merchant acquiring bank for both existing and new UPI merchants associated with Paytm. The “@Paytm” handle will be redirected to YES Bank, ensuring uninterrupted UPI transactions and AutoPay mandates for existing users and merchants.
ALSO READ | Closing Paytm Payments Bank FASTag account: Here’s how you can check and manage your Paytm FASTag status
NPCI has also advised Paytm to promptly migrate all existing handles and mandates to new payment service provider (PSP) banks.
The TPAP approval marks the resolution of the last regulatory hurdle for Paytm, ensuring a smooth transition for its customers and merchants, ET quoted Jefferies as saying.
With the possibility of losing access to a banking license, Paytm’s business model will align more closely with pure payment service providers such as PhonePe, Google Pay, and Pine Labs, as noted by the brokerage. It is expected to pursue stronger collaboration with banks and regulated entities. Additionally, the brokerage highlighted that without further regulatory restrictions, the business could evolve in various directions based on user and merchant retention.
The statement further emphasised the significance of the lending business’s path to normalisation, which has experienced partial suspension. This will offer insights into the revenue/EBITDA trajectory. Positive and negative risks are expected from factors such as user/merchant retention, revenue generation, and cost management. Clarity on attrition numbers and the normalisation process for the lending business will be closely monitored.
Morgan Stanley mentioned its expectation of updates regarding the potential impact on Paytm’s businesses in February. It also awaits revised commercials for Paytm as the business of Paytm Payment Bank transitions to other banks.
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