Paytm Removes All Fees on Merchant Transactions to Support MSMEs During Pandemic

Paytm has announced a significant change by removing all fees on merchant transactions. This move allows merchants to accept payments via Paytm wallet, UPI apps, and RuPay cards without incurring any charges. By absorbing Rs 600 crore in Merchant Discount Rate (MDR) annually, Paytm aims to support Micro, Small, and Medium-sized Enterprises (MSMEs) during the pandemic, ensuring they have enough liquidity to grow their businesses.

Over 17 million merchants using Paytm's ecosystem will benefit from this initiative. These merchants utilise tools like Paytm All-in-One QR, Paytm Soundbox, and Paytm All-in-One Android POS to process customer payments. Merchants can choose to receive payments directly into their bank accounts or their Paytm wallet, offering flexibility in managing their finances.

Paytm is also extending financial assistance to MSMEs with plans to disburse Rs 1,000 crore in loans by March 2021. The company provides collateral-free loans through its 'Merchant Lending Program' available on the Paytm for Business app. This program assesses a merchant's creditworthiness based on daily transactions to offer pre-qualified loans.

The company is actively promoting the acceptance of various payment methods such as Paytm Wallet, UPI, Rupay, NEFT, and RTGS. Merchants can accept unlimited payments using the Paytm All-in-One QR code without any charges. This initiative empowers merchants by providing them with diverse payment options to cater to their customers' preferences.

By waiving transaction fees and offering financial support, Paytm aims to bolster MSMEs during challenging times. The company's efforts are directed towards ensuring that small businesses have the necessary resources and flexibility to thrive in a competitive market environment.