If you enjoyed the cashback while shopping or making transactions through Paytm, time for some hard news. The payments app will no longer allow you to transfer the cash back to your bank accounts. What’s more, you can’t even send it to another Paytm user, thanks to the roll-out of Paytm Cash.
Paytm Cash is a ‘new avatar’ of Paytm Cashback that has been rolled out to both iOS and Android users. The feature will be visible in your Passbook section on the latest version of the app. As TelecomTalk reports, it is a server-side change which means users should have already received the feature by now. The feature essentially locks your cashback amount to be used only while making payment at Paytm accepting merchants. This makes the cashback non-transferable to fellow users or to any bank.
Until now, if you received a cashback, you could use it to make purchases as well as transfer it to a friend. However, now you can’t convert Paytm Cash into Paytm Wallet balance or transfer it anywhere, except for while making purchases at outlets or merchants accepting Paytm, where it will be automatically used.
From now on, if you make transactions using Paytm, your cashback amount will reflect in a dedicated ‘Paytm Cash’ tab. Each Paytm Cash has a value of Re 1, and there are no expiry dates.
While this move might upset users as they will be compelled to use the cashback through Paytm transactions alone, it is said to benefit the company by increasing the transaction value for Paytm. It will also reduce the cashback misuse. Speaking at IAMAI’s 12 India Digital Summit, Paytm founder Vijay Shekhar Sharma announced that his company did 255 million transactions last month, and would achieve 14 billion gross merchandise value during this ongoing fiscal.