Paytm will now remove the ‘merchant fees’ for wallet transactions in the offline world making it easier for the merchants and customers.
When a customer pays a merchant, a charge is levied per transaction on the merchant by banks. Charges vary from 0.5% to 2.5%, depending on various parameters. Some merchants make customers bear this additional cost by charging them extra, which deters the customers from paying digitally.
Nitin Misra, head of payment products at Paytm,said, “By Paytm’s eliminating this cost, an immense opportunity is created to digitize the 95% of India which still deals in cash. One of the reasons the current adoption of digital payments is low is because the existing cashless systems were not made for the mobile first world. We are deeply committed to make offline digital payments simple & ubiquitous through a infrastructure light model using the mobile.”
Paytm had rolled out a QR code based payment product to enable small shopkeepers or auto drivers to receive payments.
Using the app, Paytm customers can now scan a pre-printed Paytm code anywhere they see a ‘Paytm accepted here’ sticker & make payments.