Digital payments firm, Paytm, on Wednesday clarified doubts over National Payments Corporation of India’s (NPCI) latest circular notifying that an interchange fee of up to 1.1% will be applicable on merchant UPI (Unified Payments Interface) transactions from April 1. In a tweet, the financial tech firm urged to not spread misinformation as it said that “no customer will pay any charges on making payments from UPI either from bank account or PPI/Paytm Wallet.”
“Regarding NPCI circular on interchange fees & wallet interoperability, no customer will pay any charges on making payments from #UPI either from bank account or PPI/Paytm Wallet. Please do not spread misinformation. #Mobile payments will continue to drive our economy forward!” read Paytm’s tweet.
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Welcoming the decision by the digital payments regulatory body, Paytm said on Tuesday, “We are excited to announce that Paytm Wallet will soon be universally acceptable on all UPI QRs and online merchants. We welcome NPCI interoperability guidelines that allow Paytm Wallet to be used in every nook and corner of the country.”
Elaborating on the fees being levied on transactions above ₹2,000, it said “Strengthening our business, with this move we will earn additional interchange revenue. We will pay 15 bps of charges to banks for adding more than ₹2,000 using UPI, and will also earn 15 bps when any other wallets use Paytm bank to add more than ₹2,000 using UPI.”
Earlier in the day, NPCI also clarified the same as it issued a statement and said, “UPI is free, fast, secure and seamless. Every month, over 8 billion transactions are processed free for customers and merchants using bank-accounts.”