Paytm to invest Rs 600 crore to set up QR code-based payment systems
Online mobile wallet Paytm will invest Rs 600 crore to set up QR code-based payment solution across the country.
QR codes are machine-readable codes consisting of an array of black and white squares, typically used for storing website links or other information that can be read by a smartphone camera.
Paytm is investing in scaling up manpower, technology, and merchant education so that merchants can accept digital transactions.
“Paytm’s QR code-based payment solution is already powering more than five million merchants today and is heavily 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 no cost of the POS terminal and zero transaction charges, coupled with the vast Paytm user base, makes the solution a viable and an attractive payment option for all large and small merchants,” the company said.
The company is acquiring almost a million merchants a month and aiming for over 10 million merchants in 650 districts. The QR code-based solution already brings in 65 per cent 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 ten million merchants on our platform before Dec ‘17, which also puts us on the right path to build one of the largest payment networks in the world.”
Paytm is not the only one working on QR-code based payments systems. 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.