NPCI likely to grant TRAP licencse to Paytm: Report

New Delhi: The National Payments Corp of India (NPCI) is expected to grant a third-party application provider (TPAP) license to Paytm, previously known as One 97 Communications, by March 15, media reports said.

IBNS • 12 Mar 2024, 01:56 pm

NPCI likely to grant TRAP licencse to Paytm: Report

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This license will enable customers to continue using the Paytm app for transactions via India's widely-used unified payment interface (UPI), even as its banking arm, Paytm Payments Bank, ceases operations by the same date due to regulatory action stemming from non-compliance issues, reported Reuters.

UPI, operated by the NPCI, facilitates real-time money transfers between different banks in India.

In February, Paytm, the third-largest UPI payment app in India, handled 1.41 billion transactions amounting to Rs 1.65 lakh crore. This is a decrease from January, when it processed 1.57 billion transactions totaling Rs 1.93 trillion, as per data from the NPCI website.

PhonePe and Google Pay hold the top positions as the two largest UPI payment apps in India.

The sources told Reuters that transaction volumes are expected to pick up after TPAP license is approved.