Since demontetization of Rs 500 and Rs 1000 notes in India happened in November, 2016, fintech businesses have been flourishing with people across India adopting these solutions at a rapid rate. The wallets payments business has been rapidly growing across both consumers and merchants with the availability of waiving of transaction fee and easy-to-use QR codes.
In a recent announcement today, this goes up a notch, with Paytm launching recurring payments collection system for businesses to easily collect money across customers for selling services or goods.
The system is live at the time of writing this post and any business owner can sign up on the website and start collecting payments at competitively low costs.
- Payments can be collected by sharing unique links to customers, which when clicked allows customers to pay with their Paytm wallet or with other payment choices. Can be shared across WhatsApp, Telegram and the likes for improved experience.
- Pay with Paytm button on the website.
- API integration on the apps. Paytm claims that they offer developer-friendly APIs and native SDKS. Know more here
Businesses need not necessarily be PCI compliant and can start collecting payments immediately. The payments are settled right into the bank account in 1 day for wallet payments and in 2 days time for payments done by customers with credit and debit card payments or internet banking, says Paytm.
Paytm is offering this service at a low cost of 1.99% + service tax on the TDR amount. This poses are threat to Instamojo which is a major player in recurring payments collection business in India.
Offers for new users.
Paytm is waiving off the setup fee of Rs 5000, maintanence charge of Rs 5000 and the transaction fee for the first 3 months. Merchants can collect payments for free for the first 3 months.
These offers are applicable only to those signing up as a merchant collecting payments after November 18, 2016.
It would be interesting to note that Instamojo carries a few extra features for customers making payments, as in the availability of UPI and other wallet payment options (including Mobikwik, Freecharge, Ola Money and JioMoney). Paytm is not available as a payment choice though for Instamojo wallet payments.
With the rise of fintech competition in India, the Digital India vision has been taking shape steadily and it would be interesting to see how things pan out in the coming days.