Paytm Loyalty Scheme: On Tuesday (5 May), Paytm unveiled its new loyalty programme for Kirana stores. The programme is geared towards empowering the country’s millions of small businesses.
India’s fintech giant Paytm will invest Rs 100 crore in encouraging Kirana and grocery stores to adapt digital payments through Paytm’s All-in-one QR amid COVID-19 pandemic.
The programme will help store owners and grocers to cover up the losses they face because of transaction charges.
“This new loyalty program aims at the digital transformation of millions of Kirana stores and small businesses across the country in the post-COVID-19 world.
Our aim is to ensure that accepting digital payments is a rewarding experience for the Kirana stores,” Paytm senior vice president Saurabh Sharma said.
Businesses are currently paying a 1 percent Merchant Discount Rate (MDR) to transfer the payments received on their Paytm wallet to their respective bank accounts.
Senior Vice president Saurabh Sharma said that they will return the charged 1 percent MDR by doubling the benefits for their business including financial services and marketing tools.
Through the new loyalty programme, all merchant partners registered with Paytm including Kirana store owners and grocers will be eligible to earn reward points for accepting payments through Paytm Wallet, Rupay cards, and all UPI based payments.
Merchants can use the collected points to redeem them for vouchers instantly. The reward point can also be used to purchase exciting merchandise from Paytm for Business app, such as sound-box, EDC, etc.
The scheme doesn’t have any upper limit for reward points to be earned by a merchant, it completely depends upon the total number of transactions done through the Paytm’s All-in-one QR.
Paytm’s new loyalty programme comes at a time when Reliance has got billion-dollar investments through Facebook and Silver Lake. Recently, Vista Equity Partners also announced to invest about Rs 11,367 crore in Reliance’ Jio Platforms for a 2.32% share.
The investments have led to Paytm’s biggest threat, the launch of JioMart.
Though Paytm’s investment may seem minuscule to what JioMart plans to invest. But, the company already has a significant presence in Kirana stores and a strong merchant acquisition system. Thus, JioMart may need greater investments and strategies to challenge Paytm.
But, JioMart access to WhatsApp’s 400 million-plus user base is an edge over Paytm. WhatsApp can help Jio in acquiring the target audience as well as getting retailers on board.
JioMart is currently delivering essentials from neighbourhood Kirana stores in select regions in Navi Mumbai, Kalyan, and Thane. RIL is planning to take the plans to farmers as well.
It seems like we will see a tough competition among the two giants, Jio and Paytm. Let’s see what we will have in the near future.