Paytm Shares Hit 5%Upper Circuit as Company Partners with Axis Bank

19 Feb 2024 , 11:02 AM

Paytm shares witnessed a notable gain of 5%, hitting the upper circuit for the second consecutive session on February 19, following the crisis-ridden company’s strategic partnership with Axis Bank for the settlement of merchant payments. As of 9:16 am, the stock was trading at ₹358.35 on the NSE, reflecting investor optimism surrounding the collaboration.

One97 Communications, the parent company of Paytm, has transitioned its nodal account to Axis Bank through an escrow account it established with the bank. The partnership ensures seamless settlement of merchant payments for Paytm QR, Soundbox, and card machines, reaffirming the company’s commitment to its merchant partners.

The announcement comes in the wake of the Reserve Bank of India (RBI) extending the deadline for Paytm Payments Bank account holders, both customers and merchants, to transition their assets and seek alternative banking solutions until March 15. In response, Paytm has initiated the process of shifting its nodal account and has provided clarity to its merchant base through a list of frequently asked questions (FAQs) issued by the central bank. These FAQs address concerns regarding remaining balance, UPI payments, and FASTag usage.

It’s worth noting that Paytm had earlier estimated that 10-15% of its merchant base utilized Paytm Payments Bank accounts. With the transition, merchants are required to link another account or obtain new quarter/non-PPBL accounts to continue their operations seamlessly.

In the previous trading session, Paytm shares ended at the 5% upper circuit at ₹341.30 on the National Stock Exchange (NSE).