India’s largest mobile-first financial services platform Paytm has decided to launch a nationwide campaign to promote use of QR Code for accepting Paytm, UPI & Card payments at 0 per cent fee.
The company took this decision after Union Cabinet chaired by Prime Minister Narendra Modi approved that the Merchant Discount Rate (MDR) applicable on all debit card/BHIM UPI/ Aadhaar enabled Payment System (AePS) transactions upto and including a value of Rs. 2000 will be borne by the Government for a period of two years with effect from January 1, 2018 by reimbursing the same to the banks.
“When payment is made at a merchant point of sale, MDR is payable by the merchant to the bank. Citing this, many people make cash payments inspite of having debit cards. Similarly, MDR is charged on payments made to merchants through BHIM UPI platform and AePS,” reads a statement issued by the government.
“We have been working for several months to see how we can enable all payment instruments in one QR code. Going forward, we expect most merchants to accept payments directly into their bank accounts,” Paytm COO Kiran Vasireddy was quoted as saying.
Paytm wants to increase shops accepting payments from its e-wallet to 1 crore by April 2018 from current 55 lakh.
Paytm has collocated Rs 500 crore budget and a team of 10,000 sales agents have been deployed to apprise shops about benefits of UPI, which include zero charges and no monthly limits on the amount that can be accepted.
Customer can simply scan QR Code and pay with a single click. Accept payments through all payment methods – Credit / Debit Cards, UPI, Netbanking, Paytm Wallet, EMI and many more, informs a statement issued by the Paytm.