Paytm Will Support Third Party QR Codes – Eyes Expansion and New Avenues
Opens up yet another point of monetisation
In the last one year, Paytm have made a fortune out of their QR Code Based Payments System. Now, Paytm is all ready to expand their QR platform to allow third party services. So now users can scan any QR code to pay, and not only Paytm.
Setting up QR Template for Third Party Companies
Paytm is now upgrading their Quick Response (QR) Code Scanning System, to expand their service for the Third Party Companies. Though they work on an open source platform, Paytm will now allow the users to scan other generic QR codes. It is a part of their business expansion plan, to spread more in the offline space.
Monetization of Third Party Payments Later
Once the setup gets established, Paytm will start to monetise their new platform by charging the third party brands, and will plug advertisements together. This would open up a segment for companies using print advertisements, brochures and retail products among others to offer the detailed info regarding their offers and products. Most of the QR codes are mainly based on open source.
New Investment of around Rs. 600 Crore in QR Code Solution
The Paytm Scan and Pay Feature had done some good business in the past. Now enabling this new feature for Third Party QR Code Payments for the open sources will open up new a zone for Paytm to expand their business in the offline space. The company is also aiming to offer the same experience to the users, like they usually have with Paytm payments.
Started in 2015
The Paytm Scan and Pay was first started in October 2015. Paytm since has allowed customers to scan codes with their smartphones and then instantly transfer money to the merchant’s Paytm Wallet.
65% of Transactions are Done Through QR Codes
At present, Paytm has over 65% of their transactions transferred through QR codes on its platform. The Noida based e-wallet company has been constantly pushing their aggressive expansion in the offline market for a more wide network of merchants and shopkeepers.
Zero Transaction Charges
The other PoS (Point of Sale) machines charge a fee to be used. But with the QR code based payment services, they have zero transaction charges, and also have no cost of installation. But, when a merchant is transferring the money from the Paytm wallet to a bank account, there will a minimal transfer charge.
Paytm vs UPI
But, it isn’t only Paytm, who is the online player in the country when it comes to QR code based payments. Even government’s Unified Payments Interface (UPI) has their own QR code based payments service. Government of India has launched their own Bharat QR Code Payments to promote digital payments across offline channels.
Paytm’s New Venture
Lately, Paytm has been diversifying their business into multiple zones, by going beyond mobile and online payments. Even the company is expected to launch their chat messenger within the Paytm app by end of this month.