large scale image
LCP Image

Back to TSCFM News

Paytm will be key beneficiary of India’s UPI incentive scheme

January 13, 2023

Paytm will be key beneficiary of India’s UPI incentive scheme
India’s leading digital payments and financial services company Paytm will be a key beneficiary of India’s Unified Payments Interface (UPI) incentive scheme, brokerage firm Morgan Stanley said on Thursday.

The Union Cabinet on Wednesday approved the incentive scheme of ₹26 billion for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) for FY23, compared with ₹15 billion in FY22.

“Apart from banks, Paytm should be a key beneficiary of the above. On our estimates, Paytm would have received 5-7 per cent of the FY22 incentive, and assuming a similar share for FY23, this would represent 3-5 per cent of our contribution profit estimate (1 per cent higher than what we previously assumed for FY23),” the brokerage firm mentioned.

One97 Communications’s associate Paytm Payments Bank Ltd (PPBL) is the top beneficiary and leading remitter bank for UPI transactions.

PPBL is an issuer and PSP Bank in itself along with being an acquirer of UPI transactions.

Under the scheme, acquiring banks are provided with a financial incentives for promoting point-of-sale and e-commerce transactions using RuPay debit cards and BHIM-UPI transactions.

Vijay Shekhar Sharma, Founder, CEO & MD of Paytm, tweeted: “Huge commitment by GOI Cabinet to push Digital Payments thru UPI and RuPay. The #DigitalIndia mission of our government will bring long-term benefits to our economy.”

Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp