Paytm to be in direct competition with SBI, HDFC Bank; e-wallet firm to rollout PoS machines

Last year in May, Paytm launched its own payments bank with the aim of doubling its customer base to 50 crore by 2020. Paytm saw a phenomenal rise after Prime Minister Narendra Modi's shock ban of Rs 500 and Rs 1000 notes in November last year resulted in cash crunch and boosted use of its electronic wallet.

twitter-logo BusinessToday.In        Last Updated: June 12, 2018  | 15:57 IST
Paytm to be in direct competition with SBI, HDFC Bank; e-wallet firm to rollout PoS machines

Digital payments giant Paytm is planning to launch point-of-sales (PoS) machines at merchant outlets across the country, the Economic Times today reported. So far, the e-commerce company was using QR codes to conduct offline transactions. But now the company is opening card payments at merchant locations as well.

"The idea is to offer users all forms of digital payments. What Paytm is doing through UPI encouraging bank-to-bank transfers, this is something similar where they are entering into all forms of digital payments through PoS," the report cited a source as saying.  

"Paytm already has QR payment facilities, but in locations where people prefer card payments, it will deploy card-reading devices. But QR codes will remain the zero cost method for the merchant," the source further told the business daily.

With this move, Paytm will be competing with some of the major merchant acquirers in the PoS business such as HDFC Bank, Axis Bank, ICICI Bank and State Bank of India.

According to the report, Paytm is trying to bring in both traditional PoS terminals as well as mobile PoS terminals. Traditional PoS terminals work on GPS or landline while mobile terminals work through a smartphone.  

Last year in May, Paytm launched its own payments bank with the aim of doubling its customer base to 50 crore by 2020. Paytm saw a phenomenal rise after Prime Minister Narendra Modi's shock ban of Rs 500 and Rs 1000 notes in November last year resulted in cash crunch and boosted use of its electronic wallet.

Earlier this month, the digital payments major informed that it has crossed an annual gross transaction of USD 29 billion. Paytm said that about seven million offline merchants accept payments through Paytm QR. About 50 per cent of all Paytm transactions are made by users in tier II cities and beyond.  

Paytm spokesperson recently said that the company will continue to expand the digital payments ecosystem in the country and enable small merchants to accept payments digitally. "We are committed to continued investments in our existing businesses, and to building new ones to make India a cashless nation," the spokesperson had reportedly said.

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