Paytm on Tuesday announced waiver of all charges on merchant transactions. The company will also allow merchant partners to accept payments from Paytm wallets, RuPay cards and UPI apps with zero additional charges.
Paytm will absorb Rs 600 crore in MDR (Merchant Discount Rate) charged annually by banks and other charges. It will then use this amount to support MSMEs amid the ongoing COVID-19 pandemic. This move by Paytm will help MSMEs in ensuring that they have the necessary funds required to expand their business during the pandemic.
Paytm's initiative will aid more than 1.7 crore merchants who are currently on the Paytm ecosystem and use Paytm All-inOne QR, Paytm Soundbox and Paytm All-in-One Android POS to receive payments from customers. Merchants on Paytm, will now also have the ability to choose between receiving payments directly into their bank accounts or into their Paytm wallets.
Paytm has been promoting acceptance of payments through various methods such as Paytm wallets, UPI, NEFT & RTGS, among others. It is also empowering merchants to accept unlimited payments Paytm All-in-One QR at zero charges.
Kumar Aditya, Senior Vice-president at Paytm, said in a statement, "We are absorbing MDR to extend support to our merchant partners to increase their overall liquidity to expand their businesses. 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. This move would also encourage merchants to embrace digital payments which would further strengthen the Digital India mission."
Paytm is also working to extend financial support to MSMEs. It aims to disburse Rs 1,000 crore in loans to MSMEs by March 2021. The company still continues to offer collateral-free loans to MSMEs under its 'Merchant Lending Program' in Paytm for the business app.