Last Updated on March 15, 2024 by ethinos
Table of Content
Introduction
In a significant move, the National Payments Corporation of India (NPCI) has granted Paytm the status of a third-party application provider (TPAP) on the Unified Payments Interface (UPI). This development is poised to reshape the digital payment landscape and has caught the attention of investors and analysts alike.
Paytm’s Journey
Paytm, operated by One97 Communications, has been a dominant player in India’s digital payment ecosystem. However, its stock has faced challenges this year, plummeting by over 44 percent due to regulatory restrictions. The Reserve Bank of India (RBI) had imposed limitations on Paytm Payments Bank, leading to a prolonged bearish trend.
Additional Check : Paytm Share Price
The Game-Changing Approval
The NPCI’s green light for Paytm to function as a third-party UPI app is a game-changer. Users can now seamlessly transact using UPI within the Paytm app. This move aligns with expectations and opens up new avenues for growth.
Morgan Stanley’s Perspective
Morgan Stanley analysts view this development positively. They have assigned an ‘equal-weight’ call on Paytm’s stock, with a target price of Rs 555. This implies an impressive 57 percent upside from the current level. The endorsement from a global financial giant like Morgan Stanley underscores the potential of Paytm’s UPI venture.
Conclusion
As Paytm gears up to operate as a third-party UPI app, investors are closely watching its trajectory. The stock’s recent struggles may find some respite with this regulatory nod. Paytm’s journey from adversity to opportunity reflects the dynamism of India’s fintech landscape.
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