Paytm Wallet to work with all UPI QR codes: What it means for users

Domestic fintech company Paytm offers multiple online payment services via its app. These include Paytm wallet, which can be used to make or receive payments. To use this service, users need to add money to their wallet from their bank account. Unlike the newly-launched UPI Lite service, Paytm users need to pay a convenience fee to add money in their wallet.

Previously, Paytm Wallet users were only able to send money (to merchants or individuals) who had a QR code provided by the company or a number which was registered with the app.

Paytm Payments Bank (PPBL) has now announced that Paytm Wallet users can make payments to all UPI QR codes and online merchants. This includes the ones that aren’t signed up or registered or provided by Paytm. The company made this announcement via Twitter.


What this means for users
This change means that Paytm users who have completed full KYC with PPBL will be able to make payments on any UPI QR code and online merchants that accept UPI payments.

How Paytm Wallet transactions will help the company
After this new change, PPBL will earn 1.1% of interchange revenue on transactions made by Paytm Wallet customers. The company will earn this revenue only when users make payments to merchants acquired by other payment aggregators or banks.

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Apart from this, Paytm will have to pay 0.15% of the amount for adding more than Rs 2,000 using UPI. However, the company will also earn 0.15% of the transaction amount when customers use PPBL to add more than Rs 2,000 using UPI on other app wallets.

NPCI’s guidelines for Paytm Wallet interoperability
Wallet interoperability guidelines were recently introduced by the National Payments Corporation of India (NPCI). The latest guidelines prioritise equal opportunity for all apps to comply with UPI interoperability.