The bill payment business of Paytm Payments Bank has been migrated to Euronet Services India, a financial services company, as per a report by the Economic Times.
Recently, Paytm Payments Bank shifted its retail point of sales business to RBL Bank, and the settlement business for merchant payments to Axis Bank.
The bill payment business of Paytm Payments Bank has been migrated to Euronet Services India, a financial services company, as per a report by the Economic Times.
Recently, Paytm Payments Bank shifted its retail point of sales business to RBL Bank, and the settlement business for merchant payments was shifted to Axis Bank. Speaking to the Economic Times, a source said, “Since Paytm Payments Bank was asked to stop offering services, they had to migrate to someone else, and Euronet has taken over the business.”
Now that the partnership is done, the bill payments that are settled by Paytm Payments Bank Limited will be done via Euronet. Bharat Billpay, a division of the National Payments Corporation of India, powers the backend engine for all major bill payments in India.
As per the report, data released by Bharat Billpay indicates that, thanks to the agreement with Paytm, Euronet resolved around 19 million consumer-facing bill payments in March—a more than fourfold increase from 4.6 million in January.
Speaking about the settlement platform, a source told the Economic Times, “As a settlement platform, banks make a commission for every bill payment done through Bharat Billpay; for Paytm, that revenue source will get reduced since it will only make a small commission as a sourcing entity for the bill payment transaction.”
Amidst trouble mounting in Paytm, BharatPe has seen a considerable increase in its operations. The company saw a 77 percent increase in the boarding of merchants in February as compared to the previous month, as reported by the Hindu business line. Similarly, inquiries about onboarding on the website also increased by over 47 percent. It further stated that most of the shift occurred in the first 15 days (about 2 weeks) following the central bank's limitations on Paytm Payments Bank. Meanwhile, Paytm’s trouble has been increasing, with several top executives, such as Bhavesh Gupta, chief operating officer, Ajay Vikram Singh, and Bipin Kaul, chief business officers, resigning as well.