October 15, 2015
Paytm, an India m-commerce company, has recently launched a QR code-based payment option on its wallet app to further enhance the consumer experience and drive digital payments acceptance. This option will allow grocery stores, auto rickshaws, taxi drivers and fast-food joints having a Paytm account to accept payments after scanning a QR code using the app.
According to Paytm, in the case of the pre-printed QR codes, the only information they will contain are the Paytm account details of the merchants. After scanning the QR code of the merchant, the buyer needs to enter the transaction amount and approve the payment. The merchant can complete the transaction without using the Internet and will receive a confirmation of the transaction through a text message.
Paytm says that merchants will also be able to generate dynamic QR codes which will contain the amount to be paid as well, in addition to the merchant's Paytm details.
Currently, Pizza Hut, KFC, Costa Coffee accept payments with the Paytm app among others. Under the present Paytm method, payments at retail stores requires the generation of a one-time password after the customer's mobile number is received. With the new QR code-based system, the company plans to cover many merchants that will accept payments with the QR codes.
On the addition of the new capability, Nitin Misra, Vice President of Payment Products, said, "The existing 10,000 merchants, who enable top-up of Paytm wallets with cash, will also be encouraged to start accepting QR code-based payments as many of them are kirana stores. We see high applicability of this solution with local retailers & service providers like handymen, autos, small restaurants and kirana stores. The benefits for merchants are freedom from handling cash, instant payments and much lower operational costs. Customers can now pay exact amounts and don't have to carry cash around. Shortly, we will also launch a payment merchant application that will give retailers a wider range of functionality."
Paytm, owned and operated by One97 Communication Ltd., has investors such as Ant Financials (AliPay), Alibaba Group, SAIF Partners, Sapphire Venture among others. The company has more than 100 million Paytm wallet users, and the number of transactions carried out by these users is over 75 million per month.
The firm expects the number of wallets to cross 115 million by December.
In April, Paytm said that it is looking to cross monthly annualized sales of $4 billion in GMV (gross merchandising value) by December, with nearly half of it coming from its marketplace business. Paytm has 80,000 merchants on its platform which is expected to increase to about 100,000 by the year-end after it allows zero-commission listings.