Paytm to Charge 2 Percent Fee on Adding Money to Wallet Using Credit Cards

Paytm to Charge 2 Percent Fee on Adding Money to Wallet Using Credit Cards


  • Paytm found that some credit card users were abusing that 0-fee transfers
  • To combat this, Paytm is charging all CC deposits a 2% transfer fee
  • It is refunding this money in the form of a coupon you can use on Paytm

On Wednesday, wallet company Paytm announced that it will be charging a 2 percent deposit fee from credit card users going forward. According to Paytm, this was being done to combat misuse of its zero-fee transfers, explaining that savvy users were rotating their cash through the wallet to earn essentially “free” money in the form of reward points. Paytm said that to ensure that genuine users don’t lose money, it will return the 2 percent charge in the form of coupons that can be used on Paytm.

Later, its founder Vijay Shekhar Sharma clarified that the coupons can also be used on third-party sites to pay Swiggy or Uber, although this mechanism has not been activated yet.

As noted in the post announcing this decision, since November, Paytm has been allowing users to take cash out of the wallet to their bank accounts at no charge. Typically, cashing out has attracted a fee from wallets. At the same time, Paytm and other wallets haven’t charged fees for depositing cash into their systems. This meant that credit card users could fill up their Paytm wallets using the card, then transfer that money back to their bank accounts, at no charge. “They were not only getting free loyalty points which effectively is free cash but also getting access to free credit,” Paytm noted.

This would be subsidised by Paytm’s own costs, as the company pointed out.

Incidentally, Paytm pays fee to card networks or banks whenever you use any payment instrument like any other online commerce company. Paytm pays a hefty charges when you use your credit card to card networks and issuing banks. If user simply adds money and takes to bank, we lose money. Our revenue model requires users to spend money within our network and we make money from the margins available to us on various products/services we offer.

For this reason, Paytm is now charging a 2 percent deposit fee from credit card users, and refunding them the same in the form of a coupon that can be used on the Paytm app. As we mentioned, on Twitter, Sharma has clarified that the coupons can work on third-party sites as well, and added that you will be able to use these with apps such as Swiggy, Uber, although the FAQ on the page currently still states that it can only be used on the Paytm app.

There are a couple of other caveats listed on the FAQ page. For one, these refund coupons will only be given when the amount you’re filling up is more than Rs. 250. If your transaction is lower than that, you will not get a coupon. Also, you will get a fresh coupon every time you top-up Paytm using a credit card, these coupons can not be clubbed, and have to be applied manually and individually. Also, these coupons can only be used in a single transaction. Also, the coupon isn’t applied as a discount on the transaction – it gives you an instant cashback to your Paytm wallet.

The coupons can also be used for bill payments, recharges, and so on, these are not limited to shopping on Paytm Mall. The vouchers will expire on December 31, 2017, but the FAQ mentions that this can be extended on request.

These charges are only being applied on credit card users, so if you’re using a debit card, net banking, or UPI/ IMPS payments, then you are not affected by this move.

Disclosure: Paytm’s parent company One97 is an investor in Gadgets 360.

Tags: Paytm, paytm wallet, cashbacks, Transaction fees, Credit cards, Loyalty points

Micromax companions TranServ, Visa to convey Udio wallet to Its Smartphones

Micromax Partners TranServ, Visa to Bring Udio Wallet to Its Smartphones

home handset maker Micromax will now integrate a brand new wallet offering, powered by means of Visa and TranServ, for its cellphone customers as it seems to beef up its services enterprise.

The Gurgaon-based firm, which had partnered TranServ in December last 12 months, is dependingheavily on bills as a part of its common provider approach.

charge may be very critical to the general service method for Micromax… nearly all the new phoneproducts can have this wallet as natively incorporated in them. current customers of Micromax smartphones will even get this improve,” Micromax co-founder Vikas Jain told PTI.

He delivered the corporation has partnered Visa and TranServ to offer specific digital solutions mainlydesigned to fulfill the demands of the “cell-first” Indian clients.

“Visa brings together the service provider surroundings and TranServ looks after the technicalcomponent, whilst Micromax already has strong carrier atmosphere and consumer base in area to applythis carrier,” he said.

the usage of the proposed charge solutions, Micromax users could be able to use cellprimarily basedpush payments using mVisa and make e-trade payments on merchant and social media applications in addition to interpersonal payments to non-public contacts.

inside the future, the agencies will also study launching cell contactless bills in bodily locations thruNFC (neararea communications).

“The fee answers will soon be to be had to Micromax cellphone users via the Udio app,” he said.

Udio is a digital wallet enabled by way of TranServ. It permits clients to save using a Visa card wide variety related to the underlying prepaid wallet, anywhere Visa is standard.

virtual payments is genuinely an crucial part of our digital revel in and services method. we arelooking to offer an all pervasive payments layer to our services ecosystem permitting digitalisation of thelife of our clients,” he stated.

Chris Clark, group govt (Asia Pacific) at Visa, said cell bills are part of the future of payments and theirrapid adoption could be instrumental in assisting India move toward a cashless society.

“With India being the sector‘s fastestdeveloping phone marketplace, we have a substantial possibilityto combine the electricity, attain and security of the Visa network, with the strengths of our companionsMicromax and TranServ, to create payment answers tailored to nearby market wishes,” he brought.

TranServ co-founder and CEO Anish Williams stated the organization is constructing answers to be able to make contributions towards a holistic and cozy bills atmosphere.

download the gadgets 360 app for Android and iOS to stay updated with the latest tech news, productcritiques, and unique offers on the famous mobiles.

Tags: Apps, virtual payments, digital wallet, net, Micromax, cellular payments, cellular pockets, Mobiles, TranServ, Udio, Visa, wallet

lipkart Money Digital Wallet Launched, Limited to Android App for Now

Flipkart Money Digital Wallet Launched, Limited to Android App for Now

Flipkart has silently launched its wallet – Flipkart Money – powered by payments firm FX Mart on its Android app.

The service is currently available only on Android for mobile devices. While the company has added the Wallet tab to its website, it is not functional beyond displaying the current balance, details of transactions, and the ability to add gift cards. The company said will be activated in the future on iOS and Windows.

The launch of its own wallets service is likely to help the company issue quick refunds, users can store or save gift cards, credit and debit card details, and maintain a prepaid balance with the company.

According to the FAQs listed on the website, the Flipkart Money balance cannot exceed Rs.10,000, and topups cannot exceed Rs.10,000 per month. Any transfers from Flipkart Money to a user’s bank account are restricted to Rs.5,000 per transaction and Rs. 25,000 per month.

Users whose accounts are OTP verified will only have to agree to the terms and conditions of the wallet. The terms and conditions for the wallet notes that KYC documents may be required for activation, and continued usage of the wallet. If incorrect details are provided, the company has the right to cancel the user’s wallet.

flipkart_money_body.jpgThe integration comes five months after the company acquired a majority stake payments firm in FX Mart in September 2015, when it was reported that the company would integrate the payment service in its own platform as well as in Myntra. FXMart has been authorised by the RBI as an issuer of Semi-Closed Pre-Paid Payment Instruments.

Some of the top mobile wallet players in India include Paytm, Mobikwik and Freecharge, which rolled out mobile recharging, utility bill, and DTH payments functionality on Snapdeal’s apps. FreeCharge also provides a virtual card powered by MasterCard and Yes Bank which can be used on any Indian e-commerce website.

Download the Gadgets 360 app for Android and iOS to stay up to date with the latest tech news, product reviews, and exclusive deals on the popular mobiles.

Tags: Android, Apps, Digital Wallet, Flipkart, Flipkart Money, FXMart, India, Internet, Mobile Wallets, Online Wallet