Today, Paytm Payments Bank offers modern Internet banking services that are accessible via smartphones. Paytm provides current and savings accounts, fixed deposits with partnered banks, net-banking, debit cards, wallets, FASTag payments, and support for UPI, which is an instant real-time payment system developed by the National Payments Corporation of India.
Paytm Payments Bank Ltd notes in a blog post that it has one of the largest and “robust” platforms for UPI transactions. And the bank has “achieved this feat without relying on marketing spends like cashbacks for growth.”
As mentioned in an update from the bank, it is an NPCI certified PSP (Payment Service Provider) and Issuer Bank for UPI transactions. Several other third-party apps are only acquirers of UPI transactions with support of payment service provider banks.
PPBL is actually an Issuer and PSP Bank in itself “along with being an acquirer of UPI transactions on its own platform,” the bank’s management explained. This makes it “the source and destination for all of its transactions.” So, PPBL serves the customer “end-to-end in a transaction.”
The Paytm team noted:
“Our growth in UPI has been [supported by our] … robust infrastructure, ensuring our customers enjoy seamless transactions. So, customers and merchants who had been [dealing] with pending and failed payment issues, are increasingly preferring to use Paytm Payments Bank Ltd for sending and receiving money via UPI given its overall faster payment experience and lower technical failures.”
Paytm Payments Bank Ltd is reportedly the largest beneficiary bank for UPI transactions for “over three months in a row, ahead of other traditional financial institutions.” Beneficiary banks are banks “where UPI users receive their money,” the Fintech firm explained.
The bank claims that an increasing number of users are “preferring to direct their funds in their PPBL accounts than the commercial banks.” These funds are used by their clients for banking, making convenient virtual payments and also for several other financial services in India.
PPBL is also one of the largest remitter banks with 164 million transactions settled last month. This, despite PPBL currently “having a limit on deposits of up INR 1 lakh” or approximately $1,378.
PPBL also mentioned in its update that it aims to ensure that customers’ funds are “never lost.”
The bank claims it has the “highest debit reversal rate at 99.61%, which means it successfully refunds money into a user’s account, without manual intervention.” If there’s a failed transaction via the PBBL platform, then the user can be certain that their funds have been safely deposited back into their account, the company noted. This is possible because of their “innovative and advanced technical infrastructure, which leverages automation to immediately process refunds.”
The bank also noted:
“In the offline merchants space, PPBL has over 20 million merchants, spread across Tier I to Tier V cities in India. Our offerings to enable digital UPI transactions go beyond our app to also include Paytm QR, IoT devices and Paytm Soundbox. It is our diverse set of solutions, which has given merchants from all categories, whether it is a sabziwala or a large-scale enterprise store, to transact easily through UPI.”
Paytm further reveals that it has become one of the largest enablers (in India) for digital payments. In March 2021, the bank handled more than 970 million transactions.
The bank further noted:
“With over 64 million accounts, the bank’s total deposits have crossed over INR 3200 crore. This growth has been achieved through an increasing number of transactions in Paytm Wallet, FASTag payments, banking services.”