Paytm to use QR code as dominant payment form

Paytm is launching an aggressive nationwide campaign to promote QR code as the dominant form of acceptance of payments using either unified payments interface (UPI) or debit cards at zero cost. The move comes in the wake of the government decision to subsidise the charges on debit card payments that are usually borne by small merchants and is reminiscent of Paytm’s post-demonetisation campaign to acquire merchants for e-wallet payments.

Paytm COO Kiran Vasireddy said, “We have been working for several months to see how we can enable all payment instruments in one QR code. Going forward, we expect most merchants to accept payments directly into their bank accounts.”

The government decision on subsidising merchant discount rate (MDR, or the charges paid by shops on card payments) has provided the payments company an opportunity to replicate Alipay‘s success in China of making QR codes the dominant mode of retail payments.

Paytm currently has 55 lakh shops accepting payments from its e-wallet. The company has budgeted Rs 500 crore to promote UPI payments among merchants and is deploying a team of 10,000 sales agents to tell shops about the advantages of UPI, which include zero charges and no monthly limits on the amount that can be accepted.

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