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As the demonetization drive continues, digital wallet companies Paytm, MobiKwik and FreeCharge have cut charges on wallet-to-bank account transfers.
- Paytm will now charge 1% to send money from its wallet to any bank account, regardless of whether they have given full KYC. Earlier, Paytm used to charge 4% for such transfers and 1% for merchants who had completed their KYC process. On Paytm, the minimum amount to send to the bank is Rs 100 and the 1% charge will be on the total amount being debited from the Paytm wallet. New Paytm customers have to wait 3 days before sending money to a bank account, however, if KYC formalities have been completed, then they can send money to any bank account immediately without any waiting period. The company added that this is a limited period offer and these rates maybe revised upwards.
- Meanwhile, MobiKwik and FreeCharge have waived off charges on wallet-to-bank account transfers in order to push retailers to using wallets and help them in depositing money in bank accounts. However, both the companies have not mentioned whether this is a temporary measure. We have written to the company and will update once we have a response from them.
FreeCharge’s employees have also been getting on the street and helping users sign up on the wallet to make digital transactions.
— FreeCharge (@FreeCharge) November 15, 2016
Getting more merchants
FreeCharge has also removed the initial set-up charges and also the commission charged to merchants on each transaction. CEO Govind Rajan mentioned that the company has been signing up a merchant every 30 seconds following the move and demonetization. They added that nearly 60% of the merchants who signed up over the last 2 days, received their first digital payment within one hour of starting their FreeCharge wallet. The largest number of sign-ups are from self-employed professionals and food delivery joints.
Meanwhile, payment gateway PayU said that it is launching an aggressive campaign for their seller app and the Sellfie app (which it got when it acquired Citrus Payments). The company says merchants can download the the PayUmoney seller app and onboard them in two minutes to accept online payments. They can then create bills and send the link to consumers via Whatsapp, Email, SMS or other apps. The consumers, in return can use the link to pay via credit or debit card and net-banking.
MobiKwik and Paytm have launched a 24X7 user support number that is operational to help onboarding of merchants and users. Paytm now has over 850,000 offline merchants across India who accept Paytm as a payment method.