Paytm Clarifies RBI Circular Impact On Merchant Fees

Paytm, one of India’s leading digital payments platforms, reassured merchants and investors that the regulatory update does not alter its revenue streams from merchant acquiring. The fintech major highlighted that the fee structure for RuPay credit card usage on UPI has been revised downward, aligning with industry norms.

Circular Impact On MDR
Paytm confirmed that merchant discount rates remain unchanged, ensuring no disruption to merchant earnings or transaction economics.

Revenue Assurance
The company clarified that merchant acquiring revenue is unaffected, reinforcing stability in its core business operations.

RuPay Credit Card Fee Revision
Paytm announced a fee reduction for RuPay credit card transactions on UPI, with charges lowered to 6 basis points for non-industry transactions and 3 basis points for industry transactions.

Key Highlights

• RBI circular has no impact on merchant MDR
• Merchant acquiring revenue remains unaffected
• RuPay credit card fee on UPI reduced to 6 bps (non-industry) and 3 bps (industry)
• Paytm reassures merchants and investors of business stability

Sources: Reuters, Business Standard