The Vijay Shekhar Sharma company announced a Rs 100 crore loyalty programme for grocery stores which will help these grocers to cover up losses faced by them because of transaction charges.
Ahead of Mukesh Ambani’s kirana commerce platform JioMart’s formal launch, digital payment firm Paytm has made an announcement to attract kirana store owners. The Vijay Shekhar Sharma company announced a Rs 100 crore loyalty programme for grocery stores which will help these grocers to cover up losses faced by them because of transaction charges. Currently, businesses pay 1% merchant discount rate for transferring payment received on Paytm wallet to their bank account. Paytm aims to use the earmarked Rs 100 crore fund to give access to financial services and various marketing tools to these small businesses. This will also encourage kirana stores to accelerate the growth of digital payments through Paytm all-in-one QR during coronavirus pandemic.
“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,” Saurabh Sharma, senior vice president, Paytm said.
On the other hand, Reliance Industries Limited has also started taking its retail dream closer with a multi billion dollar deal with US-based social media platform Facebook. As both Facebook and RIL eye India’s burgeoning small traders population, the company has also rolled out its commerce kirana platform JioMart in select regions in Navi Mumbai, Kalyan and Thane. The JioMart platform is currently delivering essentials from neighbourhood kirana stores and aims to connect customers to their nearby stores. The company soon plans to take this to farmers as well.
With Facebook’s deal with RIL, the business conglomerate will also get access to Whatsapp’s payment system which is likely to be launched in India soon. JioMart also has an edge over Paytm with access to Whatsapp’s over 400 million user base which will help it in acquiring target audience as well as to on-board retailers.