Digital wallet Paytm: The digital payment platform Paytm has on Thursday has announced that it will impose a 2 percent charge for adding money to wallet using credit cards. It is also cleared that no deductions will be done while transferring using net banking and debit cards., Paytm has to take the decision because people were misusing the platform to get free credit by using credit cards to fill up the wallet and then transferring that money back into their bank accounts.
Digital wallet Paytm: Use of credit card to get credits by people had a negative impact on Paytm
“Some financially savvy users (surprisingly many of them employees of national financial institutions) exploited this model to rotate money. This may surprise normal users like most of us but for a savvy user it meant freebies at Paytm’s cost,” the company said in a blog post.
Paytm does not charge any fee for transferring money into bank accounts from the wallet. The entire process had a negative impact on Paytm as it had to bear hefty charges when customers use a credit card to card network and issuing banks.
The digital wallet company introduced zero percent platform worked a lot to its benefit
Meanwhile, Paytm announced benefits for users as well as it will provide the same amount of cashback for using credit cards to top-up the wallet. after an announcement of Center government in November 8 Paytm had introduced zero percent platform free which worked a lot to its benefit.