Why Paytm Shares Jumped Back In The Green After 3 Days

Paytm‘s share price bounced back on Friday morning halting the three-straight day losing streak.

What Happened: As per an NDTV Profit report, One97 Communications Ltd. has likely struck a deal to transfer its merchant accounts to Yes Bank. Additionally, Paytm is said to have applied for a third-party application provider license from the National Payment Corporation of India (NPCI) in collaboration with Yes Bank and Axis Bank.

Approval from NPCI is anticipated shortly, allowing Yes Bank and Axis Bank to serve as payment service providers for Paytm’s UPI channel, leveraging Yes Bank’s significant presence in the UPI transaction space.

On another front, the National Highways Authority of India (NHAI) decided to extend the compliance deadline for the ‘One Vehicle, One FASTag' initiative to the end of March due to challenges faced by Paytm FASTag users.

See Also: How To Check Purv Flexicap IPO Allotment Status

This extension provides FASTag users with an additional month to fulfil know-your-customer (KYC) requirements, as NHAI had initially aimed to implement the initiative from March 1, urging users to complete KYC by February 29.

In light of regulatory actions against Paytm Payments Bank (PPBL), Paytm has announced additional measures to strengthen the independence of PPBL’s operations. These measures include discontinuing inter-company agreements between Paytm and Payments Bank, as well as seeking new partnerships with other banks to ensure seamless services for customers and merchants.

Following the RBI’s directive on January 31 to PPBL to halt various financial transactions after February 29, including deposits, credit transactions, and top-ups.

On Thursday, it was disclosed that one of the payment giant’s early backers SoftBank cut its stake further to 2.83%.

Price Action: Paytm's share price was up 3.83% to trade at ₹418.75 as the markets opened on Friday.

Read Next: How To Check Exicom IPO Allotment Status

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesMarketsMoversTrading IdeasPaytmYes Bank