On Tuesday, Paytm waived off all charges on merchant transactions. The digital financial services platform has enabled merchant partners to accept payments from Paytm wallet, UPI apps and RuPay cards at zero charges.
Paytm will absorb Rs 600 crore in MDR (Merchant Discount Rate) charged annually by banks and other charges to support MSMEs (Micro, Small and Medium-sized Enterprises) during the ongoing pandemic to ensure that they have adequate liquidity to expand their businesses.
The initiative is estimated to benefit more than 17 million merchants on Paytm ecosystem who use Paytm All-in-One QR, Paytm Soundbox and Paytm All-in-One Android POS to accept payments from their customers. Merchants will also have the power to choose whether they want to receive payments directly into their bank accounts or into their Paytm wallet.
The company has been promoting acceptance of payments through all methods including Paytm Wallet, UPI, Rupay, NEFT & RTGS among others and empowers merchants to accept unlimited payments Paytm All-in-One QR at zero charges.
The company is also extending financial support to MSMEs and aiming to disburse Rs 1,000 crore in loans by March 2021. It continues to offer collateral-free loans under the 'Merchant Lending Program' in Paytm for Business app, determining the credit-worthiness of the merchant based on daily transactions and arriving at a pre-qualified loan offering.