Paytm on Tuesday stated it has waived off all charges on merchant transactions, enabling them to just accept funds from Paytm pockets, UPI apps and RuPay playing cards at zero cost.
“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 corporate stated in an announcement.
It added that this may profit over 17 million retailers who use Paytm All-in-One QR, Paytm Soundbox and Paytm All-in-One Android POS (point-of-sale) to just accept funds from their prospects.
“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 stated.
Additionally, the corporate stated it’s going to lengthen monetary help to MSMEs and goals 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 corporate stated.