Paytm, the Indian digital payment and commerce company on March 8 announced that it will be levying a 2 percent fee on wallet top up using credit cards. The decision was greeted with strong opposition from its customers, due to which the company has suspended the charge.
“We are suspending 2% charge on credit cards for adding money to wallet keeping users’ convenience in mind,” Paytm said in a blog post on its website. It further wrote, “We are conscious that this move caused inconvenience to a large segment of our users, including those who are using their credit card for genuine transactions.”
Notably, Paytm had a move towards charging 2 percent on wallet top up only when several users started using their Paytm wallet to earn credit points or get access to free credit and transfer money from Credit cards to their Bank account at ‘zero transaction cost’. Further the company had to bear heavy charges when customers used credit card to card network and issuing banks.
Paytm said that it would introduce new measures to prevent misuse of adding money using credit cards. “Keeping the millions of customers and merchants interest as utmost priority, we have decided to suspend the 2% fees and will continue to build a series of features to curb such misuse,” Paytm added.
Paytm became the most favoured online payment platform when the country went through the biggest cash crunch last year in November. it became an alternative for cash for millions of users and the company was able to ‘clock’ Rs. 5000 crore worth of transaction in January 2017.