Online Payment Firm Paytm To Invest INR 600 Cr For Expansion Of QR Payment System
Mobile wallet and Online Payment firm, Paytm run by One97 Communications Pvt. Ltd., is all set to invest Rs.600 Crore in over next 10 months for the expansion of their QR code payment system.
The firm aims to add 10 million merchants in over 650 districts across the country by December 2017.
Paytm adopted QR-code services in October 2015. The service is used by more than 5 Million merchants. This makes 65% of the Paytm transactions are made through QR-code payments. The usage of QR-code service usages have touched skies after the demonetization period which took place in November 2016. The firm is expecting to cross half a billion accounts by 2020.
Kiran Vasireddy, senior vice president, Paytm said:“Our 0% 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.”
QR code, or Quick Response code, is a machine-readable label that contains information such as account details of the merchants. It is easier to transfer the amount to the merchants. With the help of click, the required money will be instantly transferred to the merchants. Paytm’s QR code services are used in markets, toll booths, Food courts, small stores and big retailer stores as well.
Unlike other PoS (point of sale) machines, QR-Codes have zero transaction charges and no other app is needed to install, as it comes inbuilt in the smartphone. The amount will directly go to the merchant’s bank account which includes minimal transfer fee.
Online Payment firm Paytm is owned by One97 which runs under the Chinese online Internet giant Alibaba Groups. All these operations are taking place after Paytm got funding of $200 Million from One97. After the investment, the Indian online retailer now values the total of $1 Billion.
Paytm says the investment will go into scaling up manpower, technology, cashback and merchant education so as to make more users and merchants transact digitally for the first time and become a part of the digital economy.
QR codes are used extensively in China and is one of the key offerings of Alipay, a significant investor in One97-owned Paytm.
Paytm is expecting to replicate the success of China’s Alipay in India by pushing similar affordable technologies like QR code and e-wallets in the country.
Paytm app is today available in 10 Indian languages—Hindi, Tamil, Telugu, Gujarati, Marathi, Bengali, Kannada, Malayalam, Oriya and Punjabi.
IndiaQR, the government mandated quick response code to facilitate electronic transactions in shops without card swipe machines, will be launched on Monday. It has been developed by Mastercard Inc, Visa Inc and Rupay. The government is going to promote this payment system.