As Indian economy braves to become a cashless economy, all key players are joining hands to burden the common man with hike in charges, from banking to deposits to even payments.
Digital wallet firm Paytm, which never levied any charge till now has joined the chorus now and said it will levy a 2% fee for recharging the wallet using credit cards, with effect from March 8. This is in addition to what credit cards charge.
Paytm said on its website that this charge is to stop misuse of the wallet by using credit cards to recharge it and then transfer the money back to the bank. In the process the user earns loyalty points and free credit.
“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,” said Vijay Shekhar Sharma, CEO of Paytm.
After November 8, 2016 when demonetisation came into effect, Paytm had introduced zero percent platform fee to attract small merchants to accept payments. It has also added UPI enabled payment and Immediate Payment Service (IMPS) for instant fund transfer between banks using mobile phones.
China-based Alibaba is a major stakeholder in the company, which has over 200 million wallet users.