Digital wallet Paytm will invest Rs 600 crore by December to expand its quick response code-based payment network. The money will boost manpower and technology as well as help the company make more cashback offers and educate merchants on opting for digital payments, the Noida-based firm said on Monday.
The QR code is a machine-readable label that has information such as the account details of the merchants. It allows a customer to scan the code with their smartphones and transfer money immediately to the merchant’s Paytm account. The payment network was introduced in October 2015.
Paytm also plans to add 10 million merchants across 650 districts over the next 10 months, said Senior Vice President Kiran Vasireddy. Currently, more than five million merchants use Paytm’s QR code-based payment option, reported Mint. This accounts for 65% of overall transactions on Paytm.
The QR code payment option is also a more economically viable option. There is no transaction or installation charge involved, unlike other point-of-sale machines. However, merchants have to pay a minimal fee when they transfer the money from his Paytm account to the bank account.
The announcement comes on a day when the government will launch its own QR-code based payments system, IndiaQR, reported Business Standard. It has been developed by Mastercard Inc, Visa Inc and Rupay.
Paytm is likely to launch its payment bank by the end of March. It hopes to get 200 million account holders within a year. By 2020, the company aims to get half-a-billion accounts.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!