India’s leading digital payments platform Paytm has given the Paytm For Business app for merchants a big update. This update, which works with the Paytm App POS, is now available for Android phones and will allow merchants and retailers to use an Android phone as a payments machine for contactless credit and debit card payments to complete transactions. This will work with all contactless credit and debit cards that run on the Mastercard, Visa and RuPay platforms. This means that an Android phone can now become a payments machine for vendors, merchants, home delivery services and physical stores. This will follow the same Reserve Bank of India (RBI) guidelines which state that transactions up to a value of Rs 5,000 can be completed with contactless card transactions.
The way this works is that merchants need to download and activate the Paytm For Business app on their Android phone. For the contactless payments on the phone to work, the Android phone that you are using should have Near Field Communication, or NFC. In the app, there will be an Accept Card Payment option, which will allow merchants to verify their business details and pay a setup fee for the service to get activated. Enabling contactless payment receiving via cards on your Android phone negates the need to have a separate payment machine or terminal available at that time. Paytm sees a scenario where this Android phone enabled contactless payments system would be relevant for physical retail stores, restaurants and even for delivery and logistics, where just the smartphone becomes the payment receiving device.
If you have a credit or debit card that is contactless payments ready, you will be able to make payments if the merchant or store has the Accept Card Payment option enabled in the Paytm For Business. You simply need to, when completing the payment, tap your Visa, Mastercard or RuPay credit or debit card on the back of the merchant’s phone that runs the Paytm For Business app, to complete the transaction. The merchant has to enter the amount that needs to be charged. All banks cards are compatible with this payment option. If you are confused about whether your credit or debit card is enabled for contactless payments, you need to simply look for a Wi-Fi-esque logo on the front of your credit or debit card—if that is there, you can make contactless payments.
Paytm says that the Paytm For Business app with Accept Card Payment option supports as many as 11 Indian languages. Paytm is now handling as many as 1.2 billion monthly payments. There are more than 328 million active Paytm Wallets, there are more than 145 million UPI handles active on the Paytm platform and there are 64 million bank accounts linked with the payment platform.