The ban on old Rs. 500 and Rs. 1000 notes has become a full-time horror for people besides just the black money holders (or hoarders). Limited cash flow and strained plastic money transactions have given rise to something that is evidently apparent. While the greater part of the population is still at a waging conflict with the queues outside banks, the tech-friendly share is taking a smarter route by adopting cashless methods of payments like mobile wallets.
Paytm has reported an eye-catching growth in the number of downloads, and transactions, clocking a Gross Merchandize Value (GMV) of USD 5, billion enabling approximately seven billion transactions a day. Many of us acknowledge Paytm as what incepted as a mobile recharge application and later scaled to an e-commerce platform, and whilst the wallet option has existed all the way, it is now becoming the means to survive in this cash crunch.
Step 1: SignUp for Paytm
Hopping onto the less-cash train is easy, given you own any smartphone with an internet connection. Its app is available on Google Play Store and Apple App Store. Getting started with your #PaytmKaro experience is a two-step task – choosing from among over 10 Indian languages, and signing up with your mobile number, which is your primary identity in the app.
Paytm has laid a clean interface, improved over time which allows you to transact using your wallet, recharge mobile or pay utility bills or book tickets to movies, buses, and even flights.
Step 2: Add Money to your Paytm Wallet:
You can quickly Add Money to your wallet using Credit/Debit cards and Net Banking. After adding cash, you can start paying using Paytm wallet for all forms of payments.
Step 3.1: Start Paying Using Paytm:
Paying using Paytm is painless, and requires you to only choose either of the methods:
- Scan QR Code of the registered user/merchant, or
- Feed payee’s mobile number, or
- Allow payee to scan your Paytm code
By using any of these methods, you can also request friends/kin to transfer money into your wallet or the opposite.
Step 3.2: Accept Payments using Paytm:
Accepting or requesting a payment is a seamless task which can be accomplished by choosing Accept Payment option followed by:
- Entering sender’s mobile number (registered with Paytm) and amount, or
- Generating a unique QR code which sender can scan using their camera phones
Step 4 (Optional): Become a VIP Customer:
Presently the usage of Paytm wallet is limited to Rs.
10,000 (Update: Limit increased to Rs. 20,000 by RBI on Nov 23 ) per month which can be increased by submitting your KYC using Aadhar Card or other Govt-authorized proofs of identity – Passport, VoterID, Driving License and even NREGA Job Card. Paytm has been approved as a Payment Bank by the RBI and offers has a maximum deposit limit of One Lakh rupees.
After entering your details of your KYC, you must visit a Paytm-authorized center (locate here) with the original documents and one photograph, where an eKYC will be performed by registering your fingerprints, thereby, linking your UIDAI and Paytm accounts. You can also request for a visit at home for the collection of relevant documents and eKYC.
In order to transfer more than Rs. 50,000 in a single transaction, you must submit your PAN Card along with KYC documents. Post verification, your VIP Paytm account will be valid in a three days.
Limits and Transaction Fees:
For VIP Customers, the transaction fee of transferring money directly from Paytm to Bank accounts has been dropped till 31st December. This means that the customers who have their KYC approved by Paytm can send any amount up to Rs. 25,000 per month and will have to pay 0% as transaction charges. Paytm has left no hints as to what charges will have to incurred from the first day of the new year.
For standard Customers, a transaction fee of 1% will be charged on each transaction from Paytm to Bank accounts and the limit is set at Rs 25,000 per month. This was recently reduced from 4% to attract people to espouse Paytm services to ease the impact of demonetization.
For all Paytm to Paytm wallet transfers, no additional charge will be levied. Standard customers can only transfer upto Rs. 20,000 while VIP customers have the previledge of transfering up to Rs. 1,00,000 (One Lakh) – given you have submitted your PAN.
Concerns of Security:
Talking security of Paytm transactions, all your money is stored in an Escrow account in a trustworthy bank. All transactions, additionally, are end-to-end 128-bit encrypted which is certified by Verisign. The PCI DSS 2.0 platform maintains the confidentiality of any credit card information.
Demonetization has triggered a fundamental shift in the consumer pattern in India and Paytm is well-seated to make the best use of it. It has enabled the likes of groceries shops, snacks & tea sellers, garments sellers, Auto & Taxi drivers among many others to be a part of this advance towards an economy that deals without cash. Additionally, Paytm has daily Cashback deals to help you earn significant returns on deals ranging from Uber Payments to even buying a car on Paytm.
While Paytm statistically dominates the niche of mobile wallets in present scenario, you can choose from other options – Freecharge, Vodafone’s m-Pesa, Mobikwik, OxigenWallet, State Bank Buddy – to best suit your palate for tech.