Paytm Wallet to be universally acceptable across UPI QRs, online merchants — how the Street is reacting
Paytm share price NSE: One97 Communications shares rose on Tuesday after Homegrown Paytm Payments Bank(PPBL) announced that its full KYC wallet customers will be able to make payments on every UPI QR codes and online merchant where UPI payments are accepted.
Paytm share price NSE: One97 Communications, which owns and operates digital payments firm Paytm shares rose on Tuesday after Homegrown Paytm Payments Bank(PPBL) announced that its full KYC wallet customers will be able to make payments on every UPI QR codes and online merchant where UPI payments are accepted.
The counter opened at Rs 639 on NSE. At 1:28 PM, the counter rose 0.34 per cent, by 2.10 points to Rs 623.5 on NSE.
The largest issuer of KYC wallets (prepaid instruments) with over 100 million users company said that the Bank will earn 1.1 per cent interchange revenue when Paytm Wallet customers (i.e., the KYC wallets issued by Paytm Payments Bank) make payments on merchants acquired by other payment aggregators or banks.
"As the pioneer of mobile payments and QR based payments, this move presents incredible growth opportunities for India`s payment ecosystem. In line with RBI`s mission of making `Har Payment Digital`, we are the largest acquirer for UPI merchant payments," a Paytm Payments Bank Spokesperson said in a statement.
The Bank will pay 15 bps of charges for adding more than Rs 2,000 using UPI, and in turn, will also earn 15 bps when any other wallets use the bank to add more than Rs 2,000 using UPI.
Paytm Payments Bank is the leader in acquiring UPI payment merchants. Moreover, the company mentioned, it has been the top UPI beneficiary bank for 21 months in a row and registered 1,657.41 million transactions in February 2023.
As a part of its efforts to drive innovation, the Bank is the first payments bank to launch UPI LITE. The National Payments Corporation of India (NPCI) announced Wallet interoperability guidelines on March 24.
Paytm Share Price Target 2023
Buy Paytm shares | Target: Rs 698 | Stop loss: Rs 590
Rakesh Bansal of Rakesh Bansal Ventures points out that Paytm shares are staging an up move on the back of a favourable risk-reward ratio. Paytm has received an extension from the RBI to apply for a payment aggregator licence.
Read - Which stocks to buy this week? Paytm, Tata Communications, SRF, Dr Reddy’s, other top shares analysts recommend
Paytm share price history
The Paytm stock has gained 17 per cent on a year-to-date basis, a period in which Nifty50 headline index has declined 7 per cent.
(with PTI inputs)
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