Paytm Waives All Charges On Merchant Transactions
This initiative will benefit more than 17 million merchants on Paytm ecosystem
Digital financial services platform Paytm on Tuesday announced a waiver of all charges on merchant transactions. The company is now taking the payments revolution to the next level by enabling the merchant partners to accept payments from Paytm wallet, UPI apps and RuPay cards at zero charges.
The platform will absorb INR 600 crore in MDR charged annually by banks and other charges to support micro, small and medium enterprises (MSMEs) during the ongoing pandemic. This move would help in ensuring that they have adequate liquidity to expand their businesses.
This initiative will benefit more than 17 million merchants on Paytm ecosystem who use Paytm all-in-one QR, Paytm Soundbox and Paytm all-in-one Android POS to accept payments from their customers. Merchants will also have the power to choose whether they want to receive payments directly into their bank accounts or into their Paytm wallet.
The company has been promoting acceptance of payments through all methods including Paytm Wallet, UPI, Rupay, NEFT, and RTGS, among others, and empowers merchants to accept unlimited payments Paytm all-in-one QR at zero charges.
“We are absorbing MDR to extend support to our merchant partners to increase their overall liquidity to expand their businesses,” said Kumar Aditya, senior vice-president, Paytm, in a statement.
The establishment is also extending financial support to MSMEs and aiming to disburse Rs. 1000 crore in loans by Mar 2021.
“We believe waiving off these charges will benefit all MSMEs accepting Paytm All-in-One QR, Paytm Soundbox and Paytm All-in-One Android POS devices to collect payments directly into their bank accounts. Paytm All-in-One QR has always been the best mode for merchants to accept digital payments as it accepts unlimited payments at zero cost from any UPI app and Rupay Cards, now with Paytm Wallet too. This move would also encourage merchants to embrace digital payments which would further strengthen the Digital India mission," Aditya added.
The company continues to offer collateral-free loans under the ‘Merchant Lending Program’ in Paytm for Business app. Its algorithm determines the credit-worthiness of the merchant based on daily transactions and arrives at a pre-qualified loan offering.
It has digitized the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks.