The fintech major said it will absorb Rs 600 crore in merchant discount rate (MDR) charged annually by banks and other charges to support MSMEs amid the pandemic.
The move will benefit more than 17 million merchants on the Paytm ecosystem, the company said in a statement.
“We are absorbing MDR to extend support to our merchant partners to increase their overall liquidity to expand their businesses. We believe waiving off these charges will benefit all MSMEs accepting Paytm All-in-One QR, Paytm Soundbox and Paytm All-in-One Android POS devices to collect payments directly into their bank accounts,” said senior vice president Kumar Aditya.
The company said it is also extending financial support to MSMEs and aims to disburse Rs 1,000 crore in loans by March 2021.