Amid currency crisis in India the mobile wallet app Paytm has come up with another great idea to solve and has started accepting payments through debit and credit cards without the need of point-of-sale (PoS) or card swipe machine.
Data reveals presently about 14.8 lakh PoS machines are being used in India by seven lakh retail outlets for about 74 crore credit and debit cards.
The new feature does not require a Paytm account for the buyers. The shopkeeper generates the bill and asks the shopper to enter card details in his phone device. Similar to online transaction the customer will receive a one time password on his mobile number.
Paytm founder and CEO Vijay Shekhar Sharma said enough PoS machines are not available by them and with the new feature they can eliminate the need of the swipe machine at the vendor end.
Shopkeepers need to update the app and should self-declare their details to start collecting payment in such cardless process.
The maximum limit to accept the payment is Rs 50,000 a month, but the cap can be removed by a Paytm employee after a full registration.
There will be no fee involved till December 31 on payments with debit cards, but the 2 percent charge against credit cards payment still persist.