Country’s renowned online mobile wallet company, Paytm, will set up QR code-based payment solutions for which it will capitalize INR 600 crore.
QR codes are machine-readable codes containing an array of black and white squares. A smartphone camera scans the QR code and the information or the website link stored in the code is accessed for further procedures.
Paytm is investing to increase and improve manpower, technology, and merchant education so that merchants can accept digital transactions.
The company stated that, “Paytm’s QR code-based payment solution is already powering more than 5 million merchants today and is profoundly used by consumers to pay in their everyday lives at mom-and-pop stores, tolls, food courts, hospitals and large retail outlets, among others. With zero cost for the POS terminal and no transaction charges, coupled with the immense Paytm user base, makes the solution a viable and an attractive payment option for all large and small merchants.”
The company has started to acquire almost a million merchants per month and it aims for over 10 million merchants in 650 districts. The QR code-based solution has already brought 65% of transactions on its platform.
“Our zero per cent merchant transaction fee coupled with an aggressive merchant acquisition rate will help us take QR code-based payments across country,” said Kiran Vasireddy, Senior Vice-President of Paytm, said. “We will invest Rs 600 crore this calendar year, which will be used for scaling up merchant acquisition teams, marketing and cash-backs. We will have over 10 million merchants on our platform by the end of the year, which also puts us on the right path to build one of the largest payment networks in the world.”
Paytm is not alone in the market to work on QR-code based payments systems. A government mandated quick response code, IndiaQR, is to be launched soon to facilitate electronic transactions in shops without card swipe machines. It has been developed by Mastercard Inc, Visa Inc and Rupay. The promotion for this payment system will be handled by the government itself.