comscore Paytm’s 2% charge for adding money using credit cards invoke strong social media reactions
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Paytm’s 2% charge for adding money using credit cards invoke strong social media reactions

Paytm says that it has added these charges to discourage the practice of rotating cash.

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If you have been adding money to your Paytm wallet using a credit card, there is a slight bad news for you. According to a few changes in Paytm wallet that were recently announced by the company, it will be charging two percent fee, which is inclusive of taxes, on adding money to wallet using credit cards. Until now the same could be done with zero percent charges. Needless to say, this announcement brought in a mixed reaction with it. While some appreciated the move and sympathized with the company, most people complained that there could be better ways for Paytm to make money . Also Read - "Mobile payments exceeded ATM cash withdrawals for the first time" in India last year: PM Modi

In its blog, Paytm explains, some users began the practice of rotating cash by adding money to the wallet using a credit card, which they then transferred to their banks, essentially making money out of the platform s model. While this gave an unduly advantage to some users, Paytm claims this incurred hefty losses to the company. However, do note, that the two percent that Paytm would charge on using a credit card to recharge the wallet, would be reversed in the form of a discount coupon for same amount which will be issued within 24 hours of adding money effectively giving you this fee back. Further, a user will receive these gift coupons by an email and/or SMS within 24 hours, and would need to add more than Rs 250 using a Credit Card to be eligible for this offer. And of course these gift cards can only be used on the Paytm platform, to recharges, make bill payments, book movie tickets, shop, buy air tickets, among other services. Adding money to Paytm wallet using any other payment option still remains free.

 

 

 

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Further, after multiple queries that were written to him after the announcement, Paytm CEo Vijay Shekhar Sharma also clarified, that if you are using your credit card on the Uber app directly to recharge your Paytm wallet, then there will be no charges applied. He also gave a little warning to the ones planning a mischief, that if details of a misused card or account is used, then that card will be blocked immediately. In addition to that, Paytm also sent out a tweet yesterday, which has added Reliance Jio in the list of the networks users could pay bills for or recharge their prepaid accounts. ALSO READ: Paytm now has over 200 million e-wallet users

 

Paytm has also announced the addition of two new payment options on the platform. Users can now use UPI and IMPS to add money to the wallet. While IMPS is an instant money transferring option via Net Banking, Unified Payment Interface (UPI), developed by National Payments Corporation of India (NPCI), is a new payments interface that aims to make it easier for users to send and receive money using a single password and identification. ALSO READ: Unified Payment Interface: Here s how RBI s UPI will turn your smartphone into a bank

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  • Published Date: March 9, 2017 11:50 AM IST



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