Paytm Clarifies UPI Changes: Routine Payments Safe, Only Recurring Subscriptions Affected

Paytm has moved quickly to reassure millions of customers after a Google Play notification triggered confusion about the future of its UPI services. The fintech company clarified that day-to-day UPI payments remain unaffected, with only a small segment of users—those who rely on recurring subscriptions—needing to take action.

The scare began when Google Play sent a notification warning that “@paytm UPI handles will be deprecated” from August 31, 2025. Without additional context, many users feared Paytm’s entire UPI service was about to shut down. However, the change impacts only recurring payments, such as subscriptions to YouTube Premium, Google One storage, or similar platforms.

Paytm, led by founder Vijay Shekhar Sharma, dismissed reports of an impending disruption. “There will be no disruption for users when they make UPI payments on Paytm. Both consumer and merchant transactions will remain seamless,” the company stated.

What actually changes?According to Paytm, the shift is specifically for recurring payment mandates. Users paying for services like YouTube Premium or Google One using their existing @paytm handle will need to switch to a new UPI ID linked with their bank. These new IDs could look like @pthdfc, @ptaxis, @ptyes, or @ptsbi, depending on the user’s bank account.

For instance, a UPI ID previously set as rajesh@paytm will now function as rajesh@pthdfc or rajesh@ptsbi. Importantly, routine UPI transactions—including scanning QR codes, paying merchants, or transferring money to friends—will continue without any changes.

Why is this happening?The migration is part of Paytm’s compliance with the National Payments Corporation of India (NPCI), which has allowed Paytm to function as a Third Party Application Provider (TPAP). The update ensures that recurring subscriptions continue smoothly under the new regulatory framework. Essentially, it’s a backend adjustment rather than a disruption for everyday users.

Paytm emphasized, “This is a simple update to ensure uninterrupted recurring payments, while all other UPI transactions on the app continue without any change.”

What should users do?For those who rely on Paytm UPI for subscriptions, action is required before September 1, 2025. Users can:

• Update their recurring mandates to the new Paytm-linked bank handles.
• Switch recurring payments to another UPI app such as Google Pay or PhonePe.
• Alternatively, use debit or credit cards for subscription renewals.

For everyone else—users who only use Paytm for money transfers, shopping, or bill payments—no changes are required.

A storm in a teacupWhile Google Play’s notice was technically correct, Paytm believes it was incomplete and caused needless alarm. With millions relying on Paytm for everyday transactions, even a minor alert was enough to stir anxiety.

In reality, this adjustment is a one-time subscription update rather than a major disruption. Once users refresh their recurring payment details, it’s business as usual.

So, for those worried about Paytm UPI vanishing, the message is clear: relax. Your QR code scans, bill payments, and money transfers will keep running as normal. Only subscription-based services need a quick update before August 31, 2025.