Paytm on Tuesday said it has waived off all charges on merchant transactions, enabling them to accept payments from Paytm wallet, UPI apps and RuPay cards at zero charge.
“Paytm will absorb ₹600 crore in MDR (merchant discount rate) charged annually by banks and other charges to support MSMEs during the ongoing pandemic. This move would help in ensuring that they have adequate liquidity to expand their businesses,” the company said in a statement.
It added that this will benefit over 17 million merchants who use Paytm All-in-One QR, Paytm Soundbox and Paytm All-in-One Android POS (point-of-sale) to accept payments from their customers.
“We are absorbing MDR to extend support to our merchant partners to increase their overall liquidity to expand their businesses...This move would also encourage merchants to embrace digital payments which would further strengthen the Digital India mission,” Kumar Aditya, Senior Vice President, Paytm said.
Additionally, the company said it will extend financial support to MSMEs and aims to disburse Rs 1,000 crore in loans by March, 2021. “The company continues to offer collateral-free loans under the ‘Merchant Lending Program’ in Paytm for Business app. Its algorithm determines the credit-worthiness of the merchant based on daily transactions and arrives at a pre-qualified loan offering,” the company said.
