BENGALURU: Online digital marketplace and wallet player Paytm will invest Rs 600 crore to develop its QR code-based payment solution for merchants.
The investment will be made under parent company One97 Solutions and is aimed at increasing the use of the platform among offline merchants and retailers. The investment will be utilised to build the back-end for QR code-based payments to allow seamless and secure transactions at low bandwidth and with low-end smartphones.
is investment, the company will also scale up manpower and merchant outreach to reach its target of enrolling 1 million offline merchants every month and reach a target of 10 million merchants using the solution by December 2017 across 650 districts.
The Alibaba-backed platform, which is in the process of launching its e-commerce marketplace, has a commitment from the Chinese parent for an investment of Rs 1,350 crore, part of which will be utilised for the current investment.
“Our 0% merchant transaction fee coupled with an aggressive merchant acquisition rate, will help us take QR code-based payments to every nook and corner of this country. We will invest Rs 600 crore this calendar year, which will be used for scaling up merchant acquisition teams, marketing and cash-backs,” said Kiran Vasireddy, senior vice-president at Paytm.