BUSINESS

Paytm Takes A U-Turn Within 24 Hours, Rolls Back 2% Fee Levied On Top-Up Via Credit Cards

"We will introduce new features to prevent credit card misuse in adding money."

10/03/2017 5:03 PM IST | Updated 10/03/2017 5:04 PM IST
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NEW DELHI -- Doing a quick U-turn in about 24 hours, digital payments firm Paytm on Friday suspended the two per cent charge it announced for adding money using credit cards.

"We are suspending the two per cent charge on credit cards for adding money to wallet, keeping users' convenience in mind. We will introduce new features to prevent credit card misuse in adding money," Paytm said in a blog post here on Friday.

With an intent to prevent the misuse of transfer to bank facility at 0 per cent, Paytm had earlier applied a refundable fee of two per cent on add-money through credit cards.

"At the same time, 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," it said.

The withdrawal of the two per cent charge apparently came in view of losing out to competition after mobile wallet major MobiKwik on Thursday announced that it would continue to offer free uploading of money.

"In order to popularise the government's vision of a cashless society, we at MobiKwik have decided not to charge two per cent on credit card recharges so that more people can transact online without having to worry about additional charges," MobiKwik founder and CEO Bipin Preet Singh said on Thursday.

Paytm had announced the two per cent charge, starting March 8.

For those who were charged, the amount was to be refundable in the form of a gift voucher to be used for recharging phones, paying bills, etc. through the Paytm wallet, it also said earlier.

Paytm had announced the charges because some users started funding their wallet with their credit cards and transferring it to the bank all for free.

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