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Digital payment firm Paytm on Tuesday announced a Rs 100 crore loyalty programme for grocery stores to cover losses faced by merchants from transaction charges. Businesses are now required to pay 1 per cent MDR (merchant discount rate) for transferring payment received on Paytm wallet to their bank account. Paytm said it has set aside Rs 100 crores, which would be invested in giving access to financial services and various marketing tools to encourage kirana stores to accelerate the growth of digital payments through Paytm all-in-one QR during coronavirus pandemic. "The banks charge us a fee to load the wallet and we will be returning this 1 per cent MDR by doubling the benefits for their business which includes various financial and business services that they use on our platform," Paytm senior vice president Saurabh Sharma said.
Paytm said that as part of the new loyalty programme, all merchant partners will be eligible to earn reward points for accepting payments from Paytm Wallet, Rupay Cards, and all UPI based payment apps. "The collected points can be redeemed for a voucher instantly or for purchasing exciting merchandise from the Paytm for Business app, such as sound-box, EDC, etc. There is no limit on the reward points that can be earned by a merchant and will directly depend upon the total number of transactions done through the Paytm all-in-One QR," the statement said.