Paytm Takes Back 2 percent Fee On Wallets Top-Up :
Paytm, the Alibaba-backed company, had introduced the fee on March 8, 2017. Two days later it found that many users are misusing its platform to get free credit by using credit cards to top up their mobile wallets and then transferring the money back again to their bank accounts at zero transaction charge or free of cost.
“Keeping the millions of customers’ and merchants’ interest as utmost priority, the company has decided to remove the 2 per cent fee and announced that it will be using a series of features and constantly target the misuse,” a statement came from Paytm.
The company has introduced technology which identifies and block such malpractices.
Deepak Abbot, Senior Vice-President of Paytm said “Our topmost priority has always been our users and are honoured that they choose to transact on Paytm. We are steadfast in our resolve to enable millions of Indians become part of the digital and financial inclusion revolution,”.
MobiKwik a Paytm rival, had said that it would keep all credit transactions free to all users. All Mobile wallet companies pay charges to card networks and connected banks when consumers use their credit cards to put in or out of such digital wallets, and thus such companies lose money if users simply add money from credit cards to wallets and transfer it again to the banks.
Paytm, Early this month, said that it has blocked transactions occurring through some credit cards. It had placed a transaction engine to detect such deeds. Therefore, “This will ensure we identify genuine customers and help us serve them better,” it had said. Paytm Takes Back 2 percent Fee On Wallet on credit cards.
Last year November, Paytm introduced a zero percent fee to small merchants to accept payments to their wallet without charge. It is when the government scrapped high-value notes.
As of now Paytm does not charge any fee to transfer money from wallets to a user’s bank account.