Amid the ongoing cash crunch, Paytm, India’s largest digital wallet and payment company, has launched a new update in its app, which allows a shopkeeper to use their smartphone to accept a credit card or debit card of the buyer for payment.
The latest update will rescue many small vendors as for this no swipe machines are needed.
Essentially it will function as a virtual Point-of-Sale (POS) in shops and stores – meaning cash free transactions.
As of now, Paytm’s POS is limited to those merchants who have a smartphone, a working Internet connection and the app. After a user types card details, Paytm takes them to the bank’s website for the two-factor authentication, and the user will have to enter their OTP to get the transaction verified.
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Paytm claims they are signing up close to 40,000 merchants a day and they expect this number to hit 70,000 per day after the launch of the feature.
The company has tied up with Citibank for the same. Till December 31, Paytm won’t be charging merchants any fee, but it hasn’t clarified what will happen post this time period.
Merchants can go to www.paytm.com/business, and declare themselves as a business. After entering their bank details, they can begin accepting bank cards, without the need to buy an expensive card machine.
Also for now merchants have a limit of Rs 50,000 per month on transactions via wallets like Paytm etc.
Paytm is also claiming that the merchant does not get to store the card information of the user.
Following the demonetisation move, Paytm claimed claims to have seen a big growth with daily user growth at 500 per cent. The company is hoping that it will do 2 billion transactions by the end of this year.