Yes Bank Considering Acquisition Of Paytm Payments Bank’s Merchant Accounts, Reveals CEO

However, Kumar said that they will need a KYC compliance process undertaken by the bank before acquiring these merchants.

Written by: Anirudha Yerunkar Edited by: Anirudha Yerunkar

Published: February 29, 2024, 2:12 PM IST

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https://www.india.com/business/yes-bank-considering-acquisition-of-paytm-payments-banks-merchant-accounts-reveals-ceo-6755454/ Copy

Yes Bank also adjusted the interest rates for the senior citizens August 10, 2022. After the revision, the bank is now giving elderly residents an interest rate of 7.50% on 5-year tax-saving fixed deposits.

Yes Bank is open to taking over the merchants acquired by Paytm Payments Bank Ltd (PPBL), revealed Yes Bank’s managing director and chief executive officer Prashant Kumar.

However, Kumar said that they will need a KYC compliance process undertaken by the bank before acquiring these merchants.

“Paytm has a large customer base within the merchant side and for Yes Bank this is a very good opportunity and we are open to acquiring the merchant accounts… On average even if these merchants transact for nearly, Rs 25,000 a day, it is a big opportunity,” Kumar said in a press meet in Bengaluru, reported Money Control

“Regulator is very clear, we cannot shift risk from one entity to another. If there have been risks identified in compliance or any other risk within Paytm (and PPBL) because which the regulatory action is taken, then we need to make sure the risk is not migrated to other entities and rather resolved and taken care of,” added Kumar.

Paytm has already partnered with HDFC Bank,Axis Bank & Yes Bank to run its UPI services as a third-party application provider (TPAP) player.

Kumar added that the process for the TRAP is going on and it’s in the hands of NPCI.

Speaking on the matter, Kumar highlighted the potential benefits of such an acquisition, emphasizing the expansion of Yes Bank’s footprint in the digital payments space. By integrating Paytm Payments Bank’s merchant accounts, Yes Bank aims to enhance its service offerings and broaden its reach to a wider customer base.

The move also reflects the competitive dynamics within India’s fintech landscape, with traditional banks seeking to leverage partnerships and acquisitions to stay relevant in an increasingly digital world. By tapping into Paytm Payments Bank’s merchant network, Yes Bank aims to bolster its competitiveness and drive growth in the digital payments segment.

The potential acquisition is subject to regulatory approvals and due diligence processes. Both Yes Bank and Paytm Payments Bank are expected to engage in discussions and negotiations to navigate the complexities of the deal.