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Paytm will become a mode of payment at 40 out of 350 toll booths on Indian highways, reports Economic Times. The report does not specify which highways this will be implemented at. We’ve written to the company for more details and will update this when we hear from them. The report says that users will be charged to their Paytm wallets when they pass toll plazas.

In February this year, the National Highways Authority of India (NHAI) had approached the National Payments Corporation of India (NPCI) to set up inter-bank clearing to build electronic tolling for 350 toll plazas in India. This would help in curbing fuel usage, speed up freight and passenger queues and reduce congestion.

Two months later, the NHAI launched electronic tolling at 300 toll plazas where FASTag tagged vehicles (pdf) would not need to stop to pay tolls. FASTag, which was introduced in 2014, is a prepaid RFID device tagged to the windscreen of the vehicle which can be used to pay toll fees across e-toll set ups. In July, Oxigen Wallet started allowing its customers to recharge their FASTag stickers on the Delhi-Noida-Delhi (DND) flyway tolls. And in June, the NHAI said it would open dedicated FASTag lanes at 48 different toll plazas on Delhi – Mumbai, Mumbai-Chennai Corridors.

As of now, Mint reports that the e-toll collection system from the NPCI will be launched this month for toll payments but will be extended to other vehicle related payments like parking, service and fuel charges etc.

Paytm usage has been expanding in the recent times, thanks to the Indian government’s demonetisation of Rs 500 and Rs 1000 notes. Earlier this month, Paytm tied up with Travelyaari where users could pay through the wallet at select offline counters. The digital payments company also updated its app with 10 Indic languages and the list of Paytm supporting merchants. Along with this, Paytm, MobiKwik and FreeCharge also cut wallet-to-account transfer charges.

IRCTC tie up

In September, IRCTC signed a deal with Paytm to integrate its payment gateway. Paytm already has two deals with IRCTC to book tickets and pay for meals through its wallet. With this integration, Paytm users would be able to process payments through wallet, debit and credit cards, and netbanking.

Also read: Paytm has more offline merchant transactions than online: CEO Vijay Shekhar Sharma