Of late, businesses have gone all out to woo customers with cashbacks, discounts and personalised notes. But when some customers tried to pull a fast one on them, a few companies indicated that they wouldn’t take it lying down. Vijay Shekhar Sharma, founder and CEO of Paytm, the largest mobile wallet company in India, sent that message last week when he tweeted that Paytm would block users from using the wallet if they misused it.
Credit cards get heavy for wallets
Credit card users found unintended ways of using a mobile wallet, and for Paytm it cost a pretty penny
Credit card users make up nearly 35% of the mobile wallet user base
Paytm takes a 2% MDR hit on every transaction. It cannot afford to waive it for unscrupulous users
Doing away with a wallet-to-bank transfer fee has spurred some credit card users to misuse wallets
If wallets do not address this misuse immediately, they risk losing money in addition to earning the banks’ wrath