InvestorQ : What does Paytm’s latest Rs.100 crore loyalty program for Kirana shops mean? Does that give them an edge to compete with Reliance Retail?
diksha shah made post

What does Paytm’s latest Rs.100 crore loyalty program for Kirana shops mean? Does that give them an edge to compete with Reliance Retail?

Answer
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Neelam Naik answered.
4 months ago


Paytm has recently announced Rs.100 crore loyalty programs for grocery stores to cover up losses faced by merchants from transaction charges. Currently, businesses are required to pay 1% merchant discount rate (MDR) for transferring payment received on Paytm wallet to their bank account. Many retailer stores had complained that the charge was too steep. Hence, Paytm has decided to come up with a solution wherein they set aside Rs.100 crores, which would be invested in giving access to financial services and various marketing tools to encourage Kirana stores to accelerate the growth of digital payments through Paytm. According to Paytm, although the banks charge Paytm to load the wallets they will choose to return this 1% MDR by doubling the benefits for their client partners. This will be enabled through a loyalty programme where merchant partners will be allowed to earn reward points for accepting payments from Paytm Wallet. The accumulated points can be instantly redeemed for a voucher for purchasing merchandise from the Paytm for Business app.