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Read more about Paytm comes out with new measures to expand daily average transaction value on Business Standard. Around 10 million transactions are done on the Paytm platform every day
expand daily average transaction value
Mobile commerce platform Paytm is eyeing to substantially increase its average
transaction value of Rs 500 per day from offline sales in the near-term.
Recently, Paytm has come up with the option whereby users, instead of using
their wallets for making payments, can use their credit card on the Paytm
platform to complete a transaction. While on one hand, it eliminates the
necessity of having wallet balance altogether, on the other hand, credit cards
usually offer higher credit limits and are majorly used for transactions exceeding
the average transaction size of Paytm. This option was available for online
transactions but has now been made extended to offline as well.
“Once a user starts using credit cards, the transaction value increases instantly
and it is poised to increase as we have undertaken a slew of measures. However,
at this point of time, I can’t say to what extent it will grow”, the company’s vice
president, Amit Veer told Business Standard.
He reasoned further that although the daily transaction limit for the merchants
has been capped at Rs. 1,00,000 from the previous Rs. 25,000 a day, effectively, a
merchant can transact any amount.
Earlier this month, the mobile commerce company had partnered with IndusInd
Bank whereby, a fixed deposit account (FD) with a 6.85 per cent interest rate will
be automatically created for merchants who have balance in excess of Rs.
1,00,000 in their account.
As per legal regulations, merchants on the payment bank’s platform cannot keep
balance in excess of Rs. 1,00,000.
Thus, the excess amount is automatically transferred to the FD account.
“Fixed deposits with an attractive interest rate will surely entice new merchants
to come on our platform. As the merchant base increases and users start using
their credit card, the average transaction value will surely increase”, Veer
The SoftBank and Alibaba-backed digital financial services company, which sees
around 10 million transactions each day, has targeted to add another four million
merchants to its existing base of six million in the coming two fiscal quarters and
has earmarked Rs. 5 billion this year to conduct merchant training and increase
awareness among the merchant class.
Around 10 million transactions are done on the Paytm platform every day of
which 58 per cent accounts from tier 2 cities with metro cities accounting for 31
per cent. The rest comes in from tier 1 cities.
In addition to the existing financial services, it will also be launching new financial
services this year. In January last year, the platform received the Reserve Bank of
India’s nod to emerge as a payments bank.
Article By - Business Standard