Close to the demonetization anniversary, Paytm converges with the Unified Payment Interface (UPI). The company announced its integration with BHIM app to support UPI payments on its platform.
The UPI feature will be a beneficiary to all the 100 million monthly Paytm users, who can now make the inter-bank transaction, instantly, without leaving the app. The partnership with BHIM app will help Paytm to broaden its customer base, and vice versa. Paytm aims to be “the country’s largest issuer and acquirer of UPI, and establish the most comprehensive payments system in the country.”
Benefits of Paytm and UPI integration
There are quite a few benefits of adding UPI payments to Paytm.
- It will be easier for you to send money to your friend and acquaintance directly from Paytm. Without UPI, the money transferred via Paytm goes to the wallet and you have to pay a fee to transfer the same to your bank account.
- Merchants will be able to accept Paytm payments directly to their bank account, which will eliminate the inconvenient 25K monthly transfer limit imposed on them. Many big merchants had stopped accepting Paytm payments as there was no way they could transfer entire funds to their banks on a monthly basis.
- Paytm will now be able to compete with payment apps like Phone Pe and Tez that dominate the UPI scene in India.
- As a consumer, you will also benefit from introductory offers that Paytm will bring in to popularize UPI payments on its platform.
How to Use UPI On Paytm?
Users can create their own Paytm BHIM UPI ID (or VPA) on the app and start sending and receiving the money to their bank accounts. These IDs will be your mobile-number@paytm by default. The integration also allows existing BHIM users to pan their accounts with the BHIM API (application program interface) on Paytm.
This is how you can use Paytm UPI feature:
- The BHIM UPI option will be added to the top menu, where options like Pay, Lifafa, KYC, and others are currently placed.
- Tap on BHIM UPI option and select the bank account to proceed.
- Wait for the bank to verify the mobile number linked with the Paytm account.
- Once verified, set your M-PIN and start your transactions.
As per the guidelines by National Payments Corporation of India (NPCI), there is no limit on cash you can receive, but you can send up to Rs 1 lakh a day using BHIM UPI. As of now, Paytm’s UPI feature can only be availed by Android users – company has promised the similar update for iOS users, too.
The Paytm UPI update will start rolling out shortly. We expect it will be available to all users within next 7 to 10 days.