Mumbai: Over a crore of small merchants onboarded by Paytm for UPI acceptance using QR code will now start accepting low-value RuPay credit cards. Paytm Payments Bank has introduced RuPay Credit Card on UPI in collaboration with the National Payments Corporation of India (NPCI).
Users will soon have access to a new version of the app, which will allow them to store their RuPay credit card on the Paytm app. They can then use this app to scan Paytm QR codes with small merchants including kirana stores and paan shops that currently do not accept cards. The smaller merchants will be immediately onboarded for low-value credit card usage as they will not be charged any merchant fees or merchant discount rate for transactions up to Rs 2,000.
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“The rewards and benefits of RuPay Credit Cards will further be enhanced with the experience of digital enablement and the convenience of making all types of payments through a single UPI app. This will lead to the widespread usage of RuPay credit cards with convenient and faster payments across online and offline modes,” said NPCI chief operating officer Praveena Rai.
According to data released by the RBI, Paytm Payments Bank has deployed nearly 5.5 lakh credit card-swipe machines and 2.7 crore QR codes with merchants across the country. “We are launching payments through RuPay credit card on UPI in partnership with NPCI, and believe that this will enable convenience of payments, while also leading to greater penetration of the credit ecosystem in India,” said Paytm Payments Bank MD and CEO Surinder Chawla.
While all merchants will be enabled to accept payments up to Rs 2,000 without charges, those wanting to accept larger amounts will have to sign up with Paytm, agreeing to pay the merchant fees applicable to credit cards.
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Some of the smaller hawkers are registered as peer-to-peer merchants and would not be eligible for accepting credit card payments. However, all other shops that are registered as merchants will be credit card-enabled. Those shops with the credit card-swipe machines will also be enabled for acceptance of RuPay credit card via QR. With 38.6 crore registered transactions, the Paytm Payments Bank is one of the top 10 remitter banks for UPI transactions, according to NPCI data. As a merchant acquirer, Paytm Payments Bank has processed 5 crore transactions in December 2022.
While the RBI has barred Paytm Payments Bank from onboarding new account holders until it upgrades its system, account-holders are free to download the app and use it as a third-party app to make UPI and credit card on UPI payments. Bhim UPI app has already enabled credit cards on UPI, and other apps are also expected to follow suit. Paytm enabling acceptance with merchants has expanded the market for RuPay.
