Paytm has announced that it will invest over rupees 600 crores to enable merchants across India to accept digital payments using its QR code based payment solution. The company is investing in scaling up manpower, technology, and merchant education so they can transact digitally for the first time and become a part of the formal economy.
Paytm’s QR code based payment solution is already powering more than 5 million merchants today and is used by consumers to pay in their everyday lives at kirana stores, tolls, food courts, hospitals and large retail outlets among others. With no cost of the POS terminal and zero transaction charges coupled (at present), the vast Paytm user base makes the solution, a viable and an attractive payment option for all large and small merchants.
The company is acquiring almost a million merchants a month and aiming for over 10 million merchants in over 400 districts of the country. Within a year of the launch of its QR code based offline payments, it already contributes around 65 percent of overall transactions on its platform.
Commenting on the development, Kiran Vasireddy, senior vice president, of Paytm said, “We are on a mission to democratize digital payments. Our zero percent merchant transaction fee coupled with an aggressive merchant acquisition rate, will help us take QR code based payments to every nook and corner of this country.
Paytm’s QR code based payments has also been welcomed by the country’s healthcare industry, which includes all leading pathology labs, diagnostic centers, pharmacies and hospitals chains.
It has made its platform available in 10 different regional languages - Hindi, Tamil, Telugu, Gujarati, Marathi, Bengali, Kannada, Malayalam, Oriya and Punjabi thereby resulting in a 5x traffic increase for the platform from smaller towns.