Paytm just announced that it would soon roll out an UPI option for Paytm Payments Bank customers. “BHIM UPI Coming soon on @Paytm App,” the company tweeted. Incidentally, Paytm Payments Bank was supposed to go live on UPI in the month of August if prior reports are to be believed. UPI already has 57 banks using its payments architecture. But Paytm would possibly be the first payments bank to enroll the feature. Also Read - PM Modi launches e-RUPI digital payment solution: What is it? Is it like Bitcoin? and more questions answeredAlso Read - e-RUPI: PM Modi announces to launch a new digital payments platform today
Paytm had enabled UPI on its core app at the start of the year. For Paytm Payments Bank customers, UPI integration means a quicker, more seamless method of transferring money from the bank account to the Paytm wallet. Paytm stated last month that it has recorded 10 million sign-ups for payments bank accounts within a fortnight of the beta app going live. Once UPI is enabled, Paytm Bank customers can use the same ID to make transactions at merchant locations too. ALSO READ: Paytm Payments Bank records 10 million account signups in two weeks: Report Also Read - Apple adds UPI, RuPay, net banking on App Store: How to add new payment methods
“We will soon enable seamless creation of UPI IDs on our platform so that users can send and receive money to each other, and for merchant payments. Our significant consumer base makes us well-positioned to become a large issuer of UPI handles, driving its adoption in the country,” Paytm Payments Bank chief executive Renu Satti had said in an earlier statement. Paytm has close to 230 million wallet users at present. Most recently, the company announced an investment of $500 million to make all its customers KYC-compliant in line with new guidelines issued by RBI. ALSO READ: Paytm to invest $500 million in KYC compliance over 3 years: Report
Reports suggest that payments bank accounts are witnessing higher average deposits as compared to mobile wallets. And Paytm expects that it would go up further as more Indians warm up to the concept of payments bank accounts as a viable mode of saving. “Customers are gradually exploring the convenience and benefit of their savings account with Paytm Payments Bank and we expect deposits to increase in future,” Satti stated. At present, Paytm Payments Bank offers a four percent interest rate and cashback on deposits. Additionally, Paytm has tied up with NPCI to issue RuPay digital debit cards to all its customers.