Paytm launches @paytm UPI with BHIM UPI; Can use any bank or Paytm Payments Bank

Paytm wallet is all set to launch a full-fledged UPI support, in association with Paytm Payments Bank.

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Update: The update is now live on the Paytm app for Android. Users can see an icon called BHIM UPI and clicking on it will enable them to create a dedicated UPI address @paytm. It can be linked to their Paytm Payments Bank account or to any bank account, including Airtel Payments Bank.

Users can create upto UPI IDs using Paytm BHIM UPI. Users can also customize their IDs to personalize their UPI experience. iOS app to be available later.

Paytm is all set to launch in-house UPI identifier @paytm in association with Paytm Payments Bank tomorrow. The launch will happen in Android first, followed by iOS launch after a week.

Unlike other apps like PhonePe and Google’s recently launched Tez which offer UPI services in association third-party banks like Axis and ICICI, this launch will set Paytm as a new form of UPI app, tightly integrated with Paytm Payments Bank.

The news comes off Manish Singh on a Medium blog post, and is unclear if Paytm will allow linking of such UPI IDs only with Paytm Payments Bank accounts, or with other savings accounts too.

UPI has seen a rise in adoption since demonetization came into effect on the 8th of November in 2016. While apps like Paytm wallet, Mobikwik wallet and Freecharge took off in transaction ratio, UPI was fast catching up with the launch of BHIM UPI, UPI service offered by NPCI, backed up the government of India, and also saw the launch of similar apps – PhonePe by Flipkart, Google Tez, ICICI UPI, Axis UPI and more.

As of September 2017, more than 30.8 million transactions worth INR 52.9 billion were carried out using UPI-enabled apps, up from two million transactions to send or receive INR 7 billion in December 2016. In comparison, mobile wallet apps saw 87.5 million transactions and exchange of INR 27.6 billion in September 2017. (In December, mobile wallet apps, RBI reported, saw 87.8 million transactions to exchange INR 21.3 billion.)

Earlier this year, Paytm wallet allowed users to add money to your Paytm wallet using any UPI IDs. Paytm is doing everything possible to gain market leadership in UPI, in addition to being the market leader in wallets. Paytm has as much as 280 million registered users in India, and recently launched services in Canada. It’s unclear if Paytm is aiming at global dominance, but it’s visible that Paytm wants to own the UPI game, by offering integration with Paytm Payments Bank.

In a highly competitive wallets-business field, Paytm wallet is the only provider to launch UPI services. Freecharge does enable UPI transactions on their app, but that happens in association with Axis bank. Ola Money and Mobikwik wallet are yet to get in the UPI frenzy.

Developing post: This is a developing news. We will update this as and when updates are available. Look out for an update on the Paytm apps in the meantime!