 "Paytm to remove 'merchant fees'; encourages offline payment")
In a move to encourage cashless transactions in the offline marker, Paytm will remove ‘merchant fees’ for all wallet transactions that happen in the offline world.
Upon payment of transactions from a customer to a merchant, a charge is levied on the latter, discouraging them to accept digital payments.
These charges vary from 0.5% to 2.5%, depending on various parameters. Sometimes, customers are made to bear the additional cost which deters them from paying digitally.
“By eliminating this cost, an immense opportunity is created to digitize the 95% of India which still deals in cash,” Nitin Misra, Head of payment products at Paytm, said.
“The current adoption of digital payments is low because the existing cashless systems were not made for the mobile world.”
“ We are deeply committed to make offline digital payments simple & ubiquitous through a infrastructure light model using the mobile,” he added.
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Paytm had rolled out a QR code based payment product to enable small shopkeepers or auto drivers to receive payments.
Paytm customers using their Paytm app, can now scan a pre-printed Paytm code anywhere they see a 'Paytm accepted here' sticker and make payments swiftly and securely.