Paytm begins user migration to new UPI IDs: Here's what this means for you

After Paytm Payments Bank Limited’s (PPBL) ban last month, UPI IDs linked to the bank were unusable. However, Paytm confirmed that it is working with different banks to ensure the continuity of the UPI transactions. Now, it has finally begun the migration process helping users to switch to new payment service provider banks (PSP Banks). This move comes after the approval of the National Payment Corporation of India (NPCI).

Paytm is changing your PPBL UPI ID to a new one

Last month, NPCI gave a nod to One 97 Communications Limited (OCL) to switch to the Third-Party Application Provider (TPAP) model and complete the user migration process. It has now begun the process of migrating Paytm Payments Bank Limited users to PSP Banks. It has partnered with four major banks – Axis Bank, HDFC Bank, SBI Bank, and YES Bank.

“Following NPCI’s approval on March 14, 2024, to onboard OCL as a Third-Party Application Provider (TPAP) on the Multi Payment Service Provider API Model, Paytm has expedited the integration with Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank. All four banks are now operational on the TPAP streamlining process for Paytm to shift user accounts to these PSP banks,” noted the company in its statement shared on X (formerly Twitter).

As part of this process, it is initially transitioning users from their ‘@paytm’ handles to UPI IDs from the aforementioned banks. So your UPI ID will be switched to any of the following IDs: @ptsbu, @pthdfc, @ptaxis, or @ptyes.

Paytm is switching the UPI IDs to ensure continuity in UPI transactions for both customers and merchants. What this means is that soon you will be able to use the Paytm app and register a new and functional UPI ID, unlike the existing @paytm UPI ID. This appears to be an automated process and users should be notified of the change.

In other news about Paytm, the company started issuing HDFC Bank FASTags to customers, another change since the ban on PPBL. For the unversed, FASTags created with PPBL were also unusable after the ban. Hence, as part of the partnership with HDFC Bank, Paytm last month, started allowing users to buy an HDFC Bank FASTag on the app. If you have a Paytm FASTag and are unaware of the situation, you can read the full details here.