Paytm to not charge any fee on wallet payments for merchants; move to benefit 1.70 crore users
Paytm has a user base of 17 million or 1.7 crore merchants.
In an effort to de-clutter the digital payments ecosystem and augment the use of online payments, Paytm has announced that merchants will now be allowed to receive unlimited payments through its Paytm Wallet at a 0% fee, along with UPI and Rupay Cards. “With this, we aim to benefit more than 17 million (1.7 crore) merchants who can enjoy a 0% fee on all their digital payments with direct settlement in their bank accounts,” paytm said in a blog on its website. Paytm is one of the largest payment solutions providers in the country with a large customer base. Of the 17 millions merchants that use Paytm, Goldman Sachs recently said, a massive 70% are active.
Paytm said that its move to allow merchants to receive unlimited payments through Paytm Wallet will provide them with a single point of reconciliation for all their payments, not requiring them to use multiple QRs codes. “All they need is Paytm ‘All-In-One QR’ to accept payments from Paytm wallet, Paytm UPI, or any other UPI app,” Paytm said. This All-in-one QR code will enable merchants to receive payments from any bank account or any rupay card, along with paytm wallets at zero fee charged by the company.
The payments firm has been termed as a ‘potential super app with payments as core’ by global investment bank Goldman Sachs. “Paytm currently is the leading mobile payment platform with 150-200 Mn active users and 16 Mn merchants,” said global investment firm Bernstein. Paytm counts, Softbank, Ant Financials, and Warren Buffett’s Berkshire Hathaway as its investors.
“In recent months, we have invested heavily in driving financial inclusion for merchants across our country. This is our humble effort to provide a big boost for SMEs, Kirana merchants, wholesale traders, retailers and freelancers in the quest to accelerate the growth of digital and mobile payments across the country,” Paytm said. After its last round of funding in November of 2019, Paytm was valued at $16 billion.
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