Paytm has announced that merchants will be allowed to receive unlimited payments through its Paytm Wallet without charging any fee for the transactions. The company considers this as an effort to spur the digital payments ecosystem and promote the use of online payments. The proposed benefit is available for merchants to receive unlimited payments using Paytm Wallet at a 0% fee along with Unified Payments Interface (UPI) and Rupay Cards.
The company through its website stated that the focus is on creating benefits for approximately 17 million (1.7 crores) merchants by providing them facilities to enjoy a 0% fee on all the digital payments they undertake with direct settlement using their bank accounts.
The new offer provided by Paytm will allow merchants to receive unlimited payments through Paytm Wallet by which they can have the benefit of using a single reconciliation for all the payments they undertake, using this they can avoid the usage of multiple QR codes. The only thing merchants will need is a Paytm ‘All-In-One QR’ for accepting the payments from Paytm Wallet, Paytm UPI, or any other UPI app. Using the All-In-One QR code merchants will be able to receive the payments from any bank account or any Rupay card which is charged at zero fees when paid with Paytm Wallets.
The global investment bank Goldman Sachs describes the Indian payments firm Paytm as a potential super app with payments as the core. Currently Paytm is the leading mobile payment app having more than 150-200 Mn active users and 16 million merchants. The main investors of Paytm are Paytm counts, Softbank, Ant Financials, and Warren Buffet’s Berkshire Hathaway.
Recently the company focus on investing heavily in driving financial inclusion for merchants across the country. This move from Paytm will be beneficial for Small Medium Enterprises (SMEs), wholesale traders, kirana merchants, retailers, and freelancers. Based on the valuation in November 2019 Paytm was valued at $ 16 billion. Paytm along with its large customer base is one of the largest payment solution providers in India. Among 17 million merchants that use Paytm, 70% are active merchants.