Paytm, a digital payments company, has quashed speculations that it will be charging additional convenience or transaction fee on its platform. Paytm has said that its customers can continue using all services available on its platform without any fee.
In a statement, Paytm said, "Paytm App/Payment Gateway owned by One97 Communications Ltd. does not charge or levy any convenience/transaction fee from our customers on using any payment method which includes cards, UPI, net-banking and wallet."
Earlier in the day, there were reports that Paytm will pass the Merchant Discount Rate (MDR) to consumers to help cut down the rate at which it is losing money. Reports suggested that the company will charge 1% on payments made through credit cards, 0.9% for debit cards and up to Rs 12-15 for transactions by net banking and the Unified Payments Interface (UPI). Reports also mentioned that Paytm has been absorbing these charges and hasn't been charging anything extra for payments made through its platform.
Refuting the rumours, Paytm said, "Paytm customers will continue using all the services available on the platform without any fee (same as before).
"We do not have any plans to levy any such fee in the future either."
Paytm, SoftBank and the Alibaba Group, has advised its customers to use debit cards and UPI to pay merchants or other utility service providers who do not absorb credit card charges and expect customers to pay the same.
Last year, to promote digital transactions, the government said it will bear MDR charges on transactions up to Rs 2,000 made through debit cards, BHIM (Bharat Interface for Money), UPI or Aadhaar-enabled payment systems.
Edited By: Udit Verma