Get All Access for $5/mo

Paytm Waives All Charges On Merchant Transactions This initiative will benefit more than 17 million merchants on Paytm ecosystem

By Prabhjeet Bhatla

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Unsplash

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.

Prabhjeet Bhatla

Former Staff

News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Growing a Business

Stop the Errors: Set a Review Process That Works

Mistakes make you look unprofessional and hurt your growth. Fix them today.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Leadership

Should I Stay or Should I Go? 8 Key Points to Navigate the Founder's Dilemma

Here are eight key signs that help founders determine whether to persevere or let go.

News and Trends

5 Things to Know About India's Chess Pride, Gukesh Dommaraju

He is not only inspired by Dhoni but also relies on a coach from Dhoni's cricketing era to help him prepare mentally.