New Delhi: Mobile wallet firm Paytm has launched a code-based payment option that will allow an account holder to receive payment without using the Internet.
Account holders such as grocery stores, autorickshaw and taxi drivers and fast-food joints can scan a pre-printed QR, or quick response, code using the wallet app to receive digital payments, Paytm in a statement on Wednesday.
A QR code is a machine-readable label that contains information. In the case of pre-printed QR codes, the only information it will contain is the Paytm account details of the merchants. After scanning the code, the buyer will have to merely enter the payment amount and approve the payment.
The merchants will receive confirmation of a transaction through text message even on a basic phone. They will also be able to generate dynamic QR codes, which will contain the amount to be paid, in addition to merchant’s Paytm details.
The solution will allow a customer to pay via his Paytm wallet app using his wallet balance or saved payment instruments.
“The existing 10,000 merchants, who enable top-up of Paytm wallets with cash, will also be encouraged to start accepting QR code-based payments as many of them are kirana stores. We see high applicability of this solution with local retailers and service providers like handyman, autos, small restaurants and kirana stores," said Nitin Misra, senior vice-president (payment products) at Paytm.
Owned and operated by One97 Communication Ltd, Paytm has received funding from Ant Financials (AliPay), Alibaba Group, SAIF Partners, Sapphire Venture among others. The company recently claimed to have just over 100 million Paytm wallet users, which carry out over 75 million transactions every month.
The firm expects the number of wallets to cross 115 million by December.
In April, Paytm said that it is looking to cross monthly annualized sales of $4 billion in GMV (Gross Merchandising Value) by December, with nearly half of it coming from its marketplace business. Paytm has 80,000 merchants on its platform expected to increase to about 100,000 by the year-end after it allows zero-commission listings.
Noida-based Paytm is backed by venture capital firm SAIF Partners.