Paytm Payments Bank Limited (PPBL) has become an official acquiring partner for e-RUPI vouchers, further making it accessible at offline stores across the country.
e-RUPI, which is a government initiative, is a cashless prepaid voucher that beneficiaries can present via SMS or QR Code. Paytm’s merchant partners can then scan, enter the amount to be paid and receive the payment directly in their bank account. This will benefit beneficiaries (users), even those who do not have access to formal banking services or smartphones to avail the convenience of digital payments.
PPBL has also partnered with One97 Communications Limited (OCL), the company that owns Paytm, to leverage the latter’s strong merchant base.
Improving accessibility to digital
With this, merchants will be empowered with another digital payment collection method that will help them further increase their digital footprint and onboard more customers.
Satish Gupta, MD and CEO, Paytm Payments Bank said , “Our constant endeavour is to bring access to digital banking to the underserved and unserved population of the country. With the acceptance of e-RUPI vouchers, merchants across the country will be able to promote cashless payments, which will further drive the government’s mission of introducing more Indians to the digital economy.”
PPBL is empowering merchants to accept e-RUPI vouchers, which gives it an opportunity to tap into a larger user base that is a beneficiary of this initiative. This will further encourage more merchants to embrace cashless transactions, leading to an increase of digital payments.
The Reserve Bank of India (RBI) had recently increased the cap of e-RUPI vouchers issued by the government to ₹1 lakh per year from ₹ 10,000 and allowed beneficiaries to use the voucher multiple times until fully redeemed.
PPBL has been profitable for three years in a row and recorded a 25.8 per cent increase in profit after taxes to ₹37.5 crore in FY21, up from ₹29.8 crore in FY20. The bank’s annual revenue for FY21 stood at ₹2,200 crore.