Paytm will now levy a 2 per cent fee from the customer for recharging their wallet using credit cards. This is a result of multiple users using Paytm to get free credit by using credit cards to top up their digital wallets and transferring the money back to their bank accounts at zero transaction cost.
The cost of adding money to the wallet through other modes such as net banking and debit cards remains non-chargeable.
In November, Paytm had introduced 0% platform fee targeted at small merchants to accept payments to their wallet during the move to demonetise high-value currency notes.
The platform does not charge any fee to transfer back the amount in the wallet to a user's bank account. In a blog post written on Wednesday, Paytm said, "Paytm pays hefty charges when you use your credit card at card networks and issuing banks. If a user simply adds money and takes it to the bank, we lose money."
The 2% fee will be applicable with effect from March 8, adding that the platform will make money only if the wallet balance is used to pay for services and products on the Paytm ecosystem.