Digital wallet player Paytm will now levy a 2% fee for adding money to Paytm wallet using credit cards. This is a result of multiple users using Paytm to get free credit by using credit cards to top up their digital wallets and transferring the money back to their bank accounts at zero transaction cost.
The digital payment wallet will, however, provide an equivalent amount of cashback for using the credit card to add money to the wallet. The cost of adding money to the wallet through other modes such as net banking and debit cards remains non-chargeable.
The platform does not charge any fee to transfer back the amount in the wallet to a user’s bank account.
The 2% fee will be applicable with effect from March 8, adding that the platform will make money only if the wallet balance is used to pay for services and products on the Paytm ecosystem.
Credit card users transacting on the Paytm marketplace, booking tickets and paying utility bills on the platform will not be charged the said fee.
The platform has also added UPI enabled payment and Immediate Payment Service (IMPS) for instant fund transfer between banks using mobile phones. These gateways will be available for shopping, bill payments, ticketing and filling Paytm wallet.