Paytm partners with Axis Bank for merchant settlements

Axis Bank: Paytm QR, Soundbox, and Card Machine will persist in operating seamlessly for all their merchant members, said One 97 Communications.

On February 16, Paytm announced its partnership with Axis Bank for the settlement of merchant payments. One97 Communications, the parent company of Paytm, has shifted its nodal account to Axis Bank via an escrow account, ensuring seamless merchant settlements.

Continued Operations for Merchants

Despite the shift, Paytm QR, Soundbox, and Card Machine will continue to operate seamlessly for all merchant partners. Additionally, the Reserve Bank of India (RBI) has confirmed that these services will continue to function normally beyond March 15, 2024.

No Disruptions for Non-Paytm Payments Bank Accounts

Merchants with fund transactions connected to bank accounts other than Payments Bank need not worry about disruptions. Paytm has assured that operations will continue seamlessly for merchants using Paytm QR codes, Soundbox, or POS terminals linked to non-Paytm Payments Bank accounts.

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Commitment to Seamless Service

A spokesperson reiterated the company’s commitment to providing seamless service to merchant partners while adhering to compliance and regulatory guidelines. The shift of the nodal account to Axis Bank aims to ensure uninterrupted merchant settlements.

Anticipated Smooth Transition

Payment Services has been utilizing Axis Bank services since its inception. The existing partnership between the two entities is expected to contribute to a streamlined transition for merchants accustomed to the Paytm ecosystem.

RBI Assures Customers

In response to concerns, the RBI issued frequently asked questions (FAQs) for bank account holders of Payments Bank. The central bank assured customers that they would not be impacted by the steps taken against Paytm Payments Bank Ltd, providing clarity and reassurance to account holders.