Paytm to invest Rs 250 crore to expand Paytm QR in Tier 4 and 5 towns

Paytm will invest Rs 250 crore ($37.6 million) in expanding its QR code-based payments services into Tier 4 and 5 towns to bring in more merchants, the business announced on June 12.

Paytm aims to expand its QR merchant base - Paytm- Facebook

"With this investment, Paytm expects to reach more than 20 million merchants across India by the end of this fiscal," said the business in a statement, as reported by ET Retail.

"More than 1.2 crore merchants across the country already accept payments through Paytm QR,” said Deepak Abbot, Paytm’s senior vice president.

“However, the majority of these are based in larger towns and cities. We are aiming to reach merchants in smallest of towns across India such as Ajmer, Bekgaon, Kurnool, Rohtak, and Latur." 

Merchants who use Paytm’s QR code payments services can receive money directly into their bank accounts as payment for goods or services. Although the business stated that it costs three or four times as much to onboard a rural merchant compared to one in a metro, Tier 4 and 5 towns present a large pool of untapped business potential for Paytm. 

"In the long run, we want to reach all of the 26-30 million merchants across every nook and corner of the country,” said Abbot.

“We are progressing to enable financial inclusion in the remotest part of our country; and therefore, the Paytm QR accepts all digital payment instruments such as UPI, wallets, credit cards, debit cards, and net banking."

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