(Image source from: Twitter.com/Paytm)

Paytm's parent company, One97 Communications Limited, is strategizing to keep its Unified Payments Interface (UPI) available to users by adopting the third-party payment app (TPAP) approach. Instead of relying on Paytm Payments Bank, which will no longer offer payment services, Paytm will transition into a third-party app and integrate UPI through other lenders. To facilitate this, One97 Communications Limited is in talks with the National Payments Corporation of India (NPCI), the organization responsible for managing the UPI ecosystem.

Currently, Paytm users have virtual payment addresses (VPAs) ending in "@paytm," but after March 1, these VPAs may change to a different bank's handle. Paytm plans to collaborate with three or more banks, such as Axis Bank, HDFC Bank, and Yes Bank, to provide new VPAs for its customers. This will ensure that Paytm can continue offering UPI services despite the regulatory restrictions imposed on Paytm Payments Bank Limited by the Reserve Bank of India (RBI).

Companies like Amazon Pay, Google Pay, and PhonePe are supported by banks such as Axis Bank, HDFC Bank, and ICICI Bank through third-party means. A virtual payment address (VPA) usually combines the bank's name with the fintech brand. For instance, Google adds the prefix 'ok' (derived from 'OKGoogle') to the bank's name, while PhonePe's address is assigned as 'ybl' via Yes Bank.