Paytm, the payments platform, has decided to opt for direct deals with the merchants. The company has been sending termination notices to various payment aggregators like PayU, Citrus, Justpay, Ezetap and others.
This means merchants have to complete the entire process of payment solely on Paytm’s platform and the company will not offer its wallet services unless the merchants have exclusive agreements with it. It is expected that this move can adversely impact the revenues of the payment aggregators.
Payment aggregators are also known as merchant aggregators. They provide payment services, such as credit card and bank transfers, to merchants selling on online platforms. Typically, they store banking data of these merchants to allow for faster purchases or hold money in an account to allow for future purchases. Paytm has close to a lakh merchants on its platform.
Paytm believes that this move will help them in building their own trusted and captive audience. Using the customized integrated system is also expected to improve the over-all user experience and success rates for merchants.