Paytm plans to eliminate ‘merchant fees’ for all wallet transactions that happen in the offline world. This will be done to encourage cashless transactions in the offline marker.
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 daunts them from paying digitally.
Head of payment products at Paytm, Nitin Misra said that by eliminating this cost, an immense opportunity is created to digitize 95% of India which still deals in cash. The current adoption of digital payments is low because the existing cashless systems were not made for the mobile world.
He further added that Paytm is deeply committed to make offline digital payments simple & ubiquitous through an 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. Its 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.