Yes Bank's MD and CEO, Prashant Kumar, announced on Saturday that the bank achieved a record 5 million monthly transactions on the unified payments interface (UPI) following its collaboration with Paytm. Before this partnership, Yes Bank recorded 3.3 million transactions. The integration of Yes Bank and Axis Bank with the Paytm app, which went live on 15 March, enabled users to create new handles, including @ptyes for Yes Bank users.
Kumar stated during a post-results press conference, "Before partnering with Paytm, we observed around 3.3 million UPI transactions and now we are witnessing 5 million monthly transactions on UPI." He highlighted that the bank commands approximately 55 per cent market share in UPI transactions by merchants, providing an advantage in fee income. Additionally, Kumar mentioned the possibility of cross-selling products to merchants in the future.
Yes Bank formalised its collaboration with Paytm on the final day mandated by the Reserve Bank of India (RBI) for Paytm Payments Bank (PPBL) to halt its banking operations. PPBL previously served as the underlying bank for UPI payments on Paytm's platform. With RBI's directive, Paytm initiated the transition of its customers to alternate partner payment service provider (PSP) banks from PPBL, facilitating connectivity between third-party applications and the banking network.
Paytm's integration with Axis Bank, HDFC Bank, State Bank of India (SBI) and YES Bank under the Multi Payment Service Provider API Model received authorisation from the National Payments Corporation of India (NPCI). YES Bank will also serve as a merchant acquiring bank for Paytm's UPI merchants, ensuring uninterrupted UPI transactions and AutoPay mandates for existing users and merchants through the "@Paytm" handle redirected to YES Bank.
