Paytm, on Tuesday, launched its new loyalty program for kirana stories which include a host of benefits for small businesses. The firm has earmarked a sum of Rs 100 crore to be invested in aiding
kirana stores to adapt digital payments through
Paytm All-in-One QR during the COVID-19
pandemic.
The move by the digital payment firm comes amidst Facebook’s billion-dollar investment in Reliance and the launch of
JioMart, which is being seen as Paytm’s biggest threat.
Under Paytm’s new loyalty program, all merchant partners will be eligible to earn reward points for accepting payments from Paytm Wallet, Rupay Cards, and all UPI based payment apps. The collected points can be redeemed for a voucher instantly or for purchasing exciting merchandise from the Paytm for Business app, such as sound-box, EDC, etc.
Further, Paytm will be returning this 1%
MDR charged on wallet transactions through this loyalty program and financial services offering. There is no limit on the reward points that can be earned by a merchant and will directly depend upon the total number of transactions done through the Paytm all-in-One QR.
Saurabh Sharma, Senior Vice President - Paytm said, "Our aim is to ensure that accepting digital payments is a rewarding experience for the kirana stores. The banks charge us a fee to load the wallet and we will be returning this 1% MDR by doubling the benefits for their business which includes various financial & business services that they use on our platform."
In the meantime, JioMart has quickly ramped up operations by taking orders through WhatsApp, a platform which has more than 400 million users in the country. While JioMart has certainly intensified the e-grocery war in the country, Paytm is considered to be the most susceptible to new competition.
Soon after the Facebook investment, it was reported that PE firm Silver Lake has also picked around 1% stake in Jio Platforms. Meanwhile, according to a Reuters report, the SoftBank and Alibaba-backed Paytm remains unprofitable and its parent company suffered an over $500 million loss in March 2019.
The Reuters also cited an unknown source saying, 'If someone would have lost sleep as the Facebook-Reliance deal was announced, it must be Vijay Shekhar Sharma,' referring to Paytm's founder.