Paytm, referred to by many as a Chinese Company – with Chinese e-commerce major Alibaba Group Holding being its largest stakeholder – has been one of the biggest beneficiaries of the Demonetisation drive that hit every Indian and visitors in some way or the other. There have been many questions on how Paytm aligned its marketing campaign so perfectly with the Demonetisation announcements, something that has been left unanswered. However, the question that many Paytm users are about to ask is the 2% fee Paytm plans to levy on credit card transactions on Paytm.
Seriously! But don’t uninstall the Paytm Mobile APP just yet. We have options for you.
Paytm has quietly introduced a 2% fee on every transaction that involves a credit card used to add money to your wallet. In a company blog, the company has tried to yet again take high moral grounds by trying to project its commitment to democratising payments. Something which is flawed. To justify this change Paytm has simply blamed this on the credit card-issuing banks, in bold the company blog said: “Paytm pays hefty charges when you use your credit card.”
The blog further said “To avoid this misuse, we are making some changes in our terms. There will be no fee when you shop on Paytm or pay for any utilities using your credit card or any other payment option but to avoid the misuse highlighted above, we will put two percent fee (inclusive of taxes) only on adding money to wallet using credit cards while adding money using any other payment option remains free.”
Fearing the backlash this 2% will cause the company added “A gift voucher will be sent within 24 hours of adding money using a credit card. This change applies from March 8th. (Note: You will get a gift voucher by an email & SMS within 24 hours. You need to add more than Rs.250 using a Credit Card to be eligible for this offer)”
What you’re left with are two options –
Option 1: Delete the Paytm APP from your mobile
Option 2: Delete all credit card information from Paytm and unlink it
What we think is disappointing is the way this information was shared. Many complained that they did not receive any intimation of this change, neither through email nor SMS or even through push notifications. So basically Paytm forgot to communicate the payback when they were always the loudest to communicate the cashback.