Paytm moves settlements through its own card machines to RBL Bank
Paytm is set to transfer the backend of its point of sales (PoS) terminals meant for processing card payments to RBL Bank from Paytm Payments Bank (PPBL), according to two people in the know.
While One 97 Communications which runs Paytm will continue to run and manage these terminals, which will carry the Paytm brand, at the backend the processing of transactions will be done by RBL Bank, the people added.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitIIT DelhiIITD Certificate Programme in Data Science & Machine LearningVisitIIM KozhikodeIIMK Advanced Data Science For ManagersVisit“In technical parlance, it is called ‘bin’. So any Visa, Mastercard or RuPay card payments made at Paytm’s PoS terminal will be settled via RBL Bank,” said one of the bankers, on condition of anonymity.
The transactions will be passed on to the nodal accounts of Axis Bank for eventual settlement with the merchant. On February 16, One 97 Communications, the parent entity of Paytm, said it has started using the services of Axis Bank for all its nodal accounts, moving them from Paytm Payments Bank (PPBL), an associate entity.
Emailed queries to RBL Bank and Paytm went unanswered.
“Eventually as things settle down, Paytm might set up nodal accounts with more banks, but as of now they are using Axis Bank, so card payments will be sent from the RBL Bank system to Axis Bank,” said another banker in the know.
This move will push up the total number of
