Hard Cash Day 42: Paytm may not be the solution after all
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Hard Cash Day 42: Paytm may not be the solution after all

With Paytm levying a 1 per cent service charge for every transaction over Rs 5,000, shopkeepers are now refusing this mode of payment from customers.

Hard Cash Day 42: Paytm may not be the solution after all

To overcome losing business post demonetisation, many shopkeepers and vendors started using Paytm to receive payment from customers. But gradually, they are beginning to avoid this mode of payment, as they are having to shell out a service charge of 1 per cent for every transaction exceeding Rs 5,000.

After the government banned Rs 500 and Rs 1,000 notes, Paytm and e-wallets suddenly surged in popularity as a means of easy online payment. Customers began to rely on Paytm for buying even essential items, such as bread and butter. But now, with shopkeepers' rejection of Paytm, cashless customers have been left in the lurch.

Sharing an embarrassing experience while shopping at the Sector 10 central market of Dwarka, Gauhar Raza, a resident of Akash Ganga Apartments in Sector 6, said, "I bought certain things of daily use from a big store, and then offered to pay through Paytm, but the guy at the counter bluntly refused. I had to just leave everything and go. It was extremely humiliating!"  

Sanjay Juneja, an eatery owner in IP Extension, East Delhi, said, “I had started accepting payments though Paytm, as most customers were cashless. But the problem is the Rs 5,000 ceiling. I do business of over Rs 20,000 every day. So, every time I transfer cash from my Paytm wallet to my bank account, I am paying a service charge of 1 per cent. That's why I stopped using Paytm. But from January 1, my customers can use cards to pay, as I will get a card-swipe machine soon.”

There are other reasons as well for avoiding Paytm.

Dilip Sharma, a grocery store owner, explained, “If you pay through your ATM or any other card, your transaction is safe. Even if you are purchasing something for as little as Rs 10, the transfer happens though your bank account. If something goes wrong, you can always contact your bank. But Paytm accounts can be hacked, and any amount can be debited from your account. Paytm will not take responsibility for your lost money."

City Spidey spoke to a senior chartered accountant, Sanjeev Jayaswal, also president of Nirman Apartments, a housing complex in Mayur Vihar Phase I Extension. He opined, "Using e-wallets can be a challenge if you are not internet-savvy. Also, many shopkeepers are now refusing to accept payment through Paytm. The going-digital agenda of the government will not be an easy one to implement." 

Jayaswal also spoke of other e-wallets that are operated by different banks. He added, "Very few people know of them. Also, there's lack of clarity in the services they provide."