Almost immediately after announcing a two percent charge for those adding money to their wallets using credit cards, Paytm faced backlash from users. About 24 hours later, Paytm has rolled back the controversial announcement citing user s convenience . Also Read - Alert! Paytm cashback scam: Fake Paytm website, it's a trick to steal your moneyAlso Read - 5 apps helping people get through the COVID-19 second wave: Twitter, CoWIN, Aarogya Setu
“We are suspending two percent charge on credit cards for adding money to wallet keeping users convenience in mind,” Paytm said in a blog post. “We are conscious that this move caused inconvenience to a large segment of our users, including those who are using their credit card for genuine transactions.” Also Read - How to find COVID-19 vaccine slot using Paytm app
Paytm s announcement yesterday created quite the controversy, and many (including us) felt that the step was regressive. While some called it a bad idea, others called out Paytm for acting like a cartel. This announcement comes at a time when the government is going out of the way to promote digital economy, and encouraging cashless transactions. Paytm s reasoning for the move was to curb misuse among users who were using the process to rotate cash from their credit card to their Paytm wallet. ALSO READ: Paytm now has over 200 million e-wallet users
In essence, some users would get free credit by using credit cards to top up their digital wallets and transferring the money back to their bank accounts at zero transaction cost. But in this whole process, it was Paytm who had to foot the bill between credit card, card networks and issuing banks.
That said, Paytm has said that it is in the process of strengthening the team which focuses on identifying and blocking various types of misuse . The company also said that it will introduce new features to prevent credit card misuse in add money.”
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