In a bid to get more gains from demonitization, Paytm plans to invest over Rs. 600 crore to develop a (quality response code) QR-based payments solution.
If you are not familiar with QR code, it is a barcode with array of black and white squares which is basically used to store information such as weblinks or a merchant's bank account details.
Commenting on the development, Kiran Vasireddy, Sr. Vice President, Paytm said, "We are on a mission to democratize digital payments. Our zero% 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."
SEE ALSO: Airtel, Idea Cellular, RCom may face loss in Q4 2016, says experts
Vasireddy says, "we will invest RS.600 crore this calendar year, which will be used for scaling up merchant acquisition teams, marketing and cash-backs. We will have over ten million merchants on our platform before December'17, which also puts us on the right path to build one of the largest payment networks in the world."
The company says, QR code based payment solution is already powering more than 5 million merchants today and is heavily used by consumers to pay in their everyday lives at kirana stores, tolls, food courts, hospitals and large retail outlets among others.
"The company is acquiring almost a million merchants a month and aiming for over 10 million merchants in 650 districts of the country. Within a year of launch of its QR Code based offline payments, it already contributes around 65 percent of overall transactions on its platform," it added.
Last month Paytm also received regulatory approval from the Reserve Bank of India (RBI) to launch its payments bank.