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Switch from Paytm to other platforms: Business body to traders | india business news

Mumbai: Many small shopkeepers and hawkers onboarded by Paytm for digital payments are unaware of the RBI move to ban them. Paytm Payments Bank is stopping accepting new deposits after February 29. Some conscious people, including Uber drivers, are wary of accepting Paytm payments and are asking for cash.
All India Confederation Traders National President BC Bhartia issued an advisory for traders on Sunday Change From Paytm to other payments platform, He said small vendors and kirana store owners have no idea about what has happened and the bigger ones among them who are aware are worried.
“Paytm is telling us that they will tie up with other banks and there will be no problem, but we don’t know how the new setup will be,” he said.
Paytm shares hit lower circuit of 20% for two consecutive days following RBI’s move to impose stringent restrictions. Business Its subsidiary company Paytm Payments Bank. Merchants who have UPI QR code stickers linked to Paytm Payments Bank will have to look for alternatives after February 29.
Paytm’s rivals, PhonePe and MobiKwik, are expanding their on-ground presence to on-board merchants. “PhonePe is assuring us of the security of their systems, encouraging us to use their platform,” said a trader.
Responding to queries, a PhonePe spokesperson said, “We are experiencing a surge in requests from merchants for QR codes and smart speakers, and we are making sure to meet that demand.”
Paytm is looking for a new bank to take over the role of Paytm Payments Bank, but it still needs to clarify whether a large-scale transformation is possible.
SBI chief Dinesh Khara is set to acquire Paytm’s merchant bank accounts through a subsidiary, SBI Payments, while lenders are keen on merchant bank accounts. Axis Bank and HDFC Bank are also potential players in the merchant acquisition sector.
TOI spoke to some small sellers who accepted digital payments exclusively through Paytm, and none of them were aware of the implications of this
A vegetable vendor in Mumbai’s Andheri, who had a Paytm QR code for consumer payments, said with a blank look, “Mujhe nahi patna” (I don’t know). An electrical store owner had a similar reaction.
“If other fintech players acquire merchants, they will have to go through the ‘re-KYC process’,” said Monica Jasuja, a fintech expert and startup consultant. “Paytm’s sweet spot was to serve merchants of all sizes, taking advantage of economies of scale. However, a financial model shift disrupts this. Merchants, especially smaller merchants, may resist increased costs, “That could lead to churn. Banks and fintechs, with deeper pockets, could take advantage of this vulnerability, launching aggressive acquisition campaigns,” Jasuja said.
There is no clarity on whether the regulator will insist on changing all QR codes if Paytm switches to another bank. “The QR code must be issued by a bank or a certified TPAP (third-party application provider). Until Paytm gets a TPAP license from NPCI (National Payments Corporation of India), which is likely to take time, they cannot issue new QR codes. “They could lose a lot of merchants,” said one analyst.

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