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Wallet wars: After Paytm taxes credit card money transfers, Mobikwik waives it

Author: IANS/Friday, March 10, 2017/Categories: Banking & Financial Services

Wallet wars: After Paytm taxes credit card money transfers, Mobikwik waives it

New Delhi, March 9 (IANS) - A day after digital payments firm Paytm announced 2% charge for adding money to its wallets using credit cards, mobile wallet major MobiKwik said that it will continue to offer free uploading of money. "In order to popularise the government's vision of a cash-less society, we at MobiKwik have decided not to charge 2% on credit card recharges so that more people can transact online without having to worry about additional charges," MobiKwik Founder and CEO Bipin Preet Singh said. 
 
MobiKwik, which currently serves over 55 million users and 1.4 million merchants, said that by the end of 2017, it aims to increase its user base to 150 million and serve over 5 million merchants.  Paytm, starting Wednesday, has announced a charge of 2% on adding money to its wallet using a credit card.  
 
"When you use your credit card to add money to Paytm wallet, you will be charged a refundable 2% fee. The refund will be in the form of a gift voucher that you can use at businesses where you usually use Paytm wallet - eg. to recharge phones, pay bills," Paytm had said in a blog post on March 8. The 2% is applicable only on adding money to wallet and not on payment of bills, recharges or purchases on Paytm, it had said. 

Paytm said that the charge was announced because some users started funding their wallet with their credit cards and transferring it to the bank all for free. "To avoid this misuse, we are making the changes. However, this 2% fee charges on credit card would be reversed in the form of a gift voucher for the same amount which will be issued within 24 hours of adding money. This hopefully keeps unintended misuse of our platform away," it had said. (Reports, however, indicate that Paytm has now withdrawn the charges).

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S Vijaykrishnan
S Vijaykrishnan

IANS

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