In a bid to build a captive audience, Paytm, the payments platform, has decided not to offer its wallet through merchant aggregators like Justpay, Ezetap, FTcash. Partner merchants will have to enter into direct agreements with Paytm instead, and complete the entire process of payment solely on the company’s platform if they wish to access its wallet services. Paytm’s move is the first-of-its kind in the Indian digital payments space.
Speaking on the decision, Paytm spokesperson Kiran Vasireddy said, "We want to closely work with our merchants in solving their key challenges. Direct engagement helps us to customize our payment offerings in line with their specific business needs. Merchants are taking cognizance of the fact that using our customized solution will boost their business further and are therefore in favour of this move.”
Paytm has sent termination notices to couple of payment aggregators in the last few weeks. According to a company press release, merchants are backing this decision as it means augmented success rates and better user experience for their users.
With its mobile first strategy, Paytm does more than 120 million transactions of various digital and physical goods every month.