Paytm launches personalised UPI IDs; Here's how to create your own

Vijay Shekhar Sharma-led fintech major Paytm has rolled out a new feature that allows users to create personalised UPI IDs, marking a significant move toward improving user privacy and offering more control over financial identities.

The feature enables users to choose custom UPI handles such as name@ptyes or name@ptaxis, a shift from the current system where mobile numbers often double as UPI addresses. It is currently available through Yes Bank and Axis Bank handles, with more banking partners expected to support the feature soon.

The rollout comes at a time when data privacy has become an increasingly important consideration for digital payment users, many of whom are wary of exposing their phone numbers during transactions. By decoupling UPI IDs from mobile numbers, Paytm seeks to alleviate these concerns.

The company said the new UPI handles would allow users to receive payments without disclosing their personal mobile numbers, whether in routine store transactions, payments to gig workers, or transfers between friends.

How to create a personalized UPI ID on Paytm

To set up your personalised UPI ID, follow these steps:

1. Open the Paytm app
2. Tap on the profile icon and go to ‘UPI Settings’
3. Select ‘Manage UPI ID’ and choose a personalised ID (e.g., name@ptyes)
4. Confirm and activate the new UPI ID as the primary UPI ID to be used for payments

In a statement, a Paytm spokesperson said the update was designed in response to user feedback. “We have introduced personalized UPI IDs to offer more choice and privacy in payments. We heard the feedback from our customers who wanted to keep their mobile numbers private, and built this solution to address that need.”

This latest privacy-focused feature builds upon a broader suite of updates Paytm has launched in recent months. These include the ability to hide or unhide transactions, receive money alerts via home screen widgets, auto top-up functionality for seamless low-value payments using Paytm UPI Lite, and downloadable UPI statements in both PDF and Excel formats. The company also introduced a unified bank balance view that allows users to monitor funds across all linked accounts within a single dashboard.

The announcement also coincides with Paytm’s ongoing efforts to internationalise its UPI services. Notably, Indian travellers can now use Paytm UPI in seven countries including the United Arab Emirates, Singapore, France, Mauritius, Bhutan, Sri Lanka, and Nepal.