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Published: March 15, 2024
Updated: March 15, 2024

Paytm Receives Game-Changing Approval: Share Price Surges 5%

A Game-Changing Approval

The stock market witnessed a significant surge as Paytm's share price soared by 5% following the much-awaited approval from the National Payments Corporation of India (NPCI). Paytm has been granted permission to operate as a Third-Party Application Provider (TPAP) under the multi-bank model.

Relief Amid Expectations

For Paytm, the approval from NPCI comes as a much-needed relief. Analysts anticipated this move, considering its positive impact on the company's trajectory. Paytm's strategic partnership with leading banks such as Axis Bank, HDFC Bank, State Bank of India Ltd, and Yes Bank further strengthens its position in the UPI domain.

Strategic Partnerships Unveiled

As Paytm ventures into the UPI space, it unveils strategic partnerships with four prominent banks. While these banks will serve as payment service providers, Yes Bank will take on the role of the merchant acquiring bank for existing and new UPI merchants.

Analysts' Insights

Analysts at Jefferies India Pvt Ltd affirm that this regulatory approval eliminates the last remaining obstacle for a seamless transition of customers and merchants. With regulatory challenges addressed, Paytm can now focus on expanding its UPI business with confidence.

Navigating Regulatory Challenges

In recent times, Paytm encountered regulatory hurdles, leading to a significant decline in its share price. The Reserve Bank of India's regulatory actions resulted in restrictions imposed on Paytm Payments Bank Limited (PPBL). However, with the recent approval from NPCI and regulatory reassurance from RBI, Paytm is poised for a resurgence.

The approval granted to Paytm by NPCI marks a pivotal moment in the company's journey. With regulatory obstacles cleared and strategic partnerships unveiled, Paytm is primed for growth in the UPI space. As it navigates through regulatory challenges, Paytm demonstrates resilience and adaptability, reinforcing its position as a key player in India's digital payments landscape.