New Delhi, March 10: Digital payment company Paytm did a quick U-turn in about 24 hours on Friday by suspending the two per cent charge it announced for adding money using credit cards.
"We are suspending the two per cent charge on credit cards for adding money to the wallet, keeping users' convenience in mind. We will introduce new features to prevent credit card misuse in adding money," Paytm said in a blog post in New Delhi on Friday.
Paytm on Thursday had announced that it will now levy a 2 percent charge for adding money to the wallet using credit cards.
"At the same time, we are conscious that this move caused inconvenience to a large segment of our users, including those who are using their credit card for genuine transactions," it said.
Paytm had taken this decision because of the credit card holders misusing the platform to get free credit by using credit cards to fill up the wallet and then transferring that money back into their bank accounts.
The rollback of this decision is seen as a competitive measure with mobile wallet company MobiKwik, which announced to continue free uploading of money taking an indirect dig at Paytm.
"In order to popularise the government's vision of a cashless society, we at MobiKwik have decided not to charge two per cent 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 on Thursday.