Digital wallet firm Paytm, operated by One97 Communications Ltd, plans to invest Rs 600 crore ($89 million) to develop a QR code-based payments solution, several media reports stated.
The company, which plans to train 10 million merchants to accept digital payments across 650 districts by the end of this year, will use the investment to scale up merchant acquisition teams, technology, marketing and cash-backs, a report in Business Standard stated citing Kiran Vasireddy, senior vice president of Paytm.
“We want to enable merchants across India to accept digital payments using QR code. No cost for the point of sale terminal, zero transaction charges and vast Paytm user base, makes the solution a viable and an attractive payment option for all large and small merchants,” the business daily quoted Vasireddy as saying.
The government’s demonetisation move spurred the use of QR codes on the e-commerce site, a report in Mint stated. Paytm’s QR code-based payment solution is used by more than five million merchants. The payments firm receives 65% of its overall transactions via QR codes, the report added.
QR code or quick response code, is a machine-readable barcode consisting of an array of black and white squares that includes digitally encrypted information such as account details, which can be decoded with a smartphone camera.
Last month, Paytm received regulatory approval from the Reserve Bank of India (RBI) to launch its payments bank. To comply with the RBI’s directions, One97 Communications merged its wallet business with the payments bank. Paytm founder Vijay Shekhar Sharma will hold a majority share in Paytm Payments Bank as the bank licence was issued in his name. One97 Communications will hold the remaining stake.