PayTm will charge 2% extra on all the e wallet credit through credit card. Credit card users transacting on the Paytm marketplace, booking tickets and paying utility bills on the platform like electricity bills, telephone bills, FasTag recharge etc will not be charged.
This is a result of multiple users using Paytm to get free credit by using credit cards to top up their digital wallets and transferring the money back to their bank accounts at zero transaction cost.
The digital payment wallet will, however, provide an equivalent amount of cashback for using credit card to add money to the wallet. The cost of adding money to the wallet through other modes such as netbanking and debit cards remains non-chargeable.
The platform has also added UPI enabled payment and Immediate Payment Service (IMPS) for instant fund transfer between banks using mobile phones. These gateways will be available for shopping, bill payments, ticketing and filling Paytm wallet.
The Alibaba-backed platform has over 200 million wallet users.