Paytm to charge 2% fee for loading wallet via Credit Card

If you use Credit Card to load your Paytm wallet then get ready to pay additional 2% fee on whatever amount you add in your Paytm wallet. In its official blog, Paytm announced that it will be charging this additional fee as it found that certain Paytm users were misusing it as a credit line. These users, of whom many were of national financial institutions, use to load their Paytm wallet using their credit card and then use to transfer the money in their bank account.


In this entire process the users who were doing it not only got free loyalty points from their credit card providers but also interest free cash for certain days. Paytm is required to pay certain charges to these credit card providers every time a user adds money to the Paytm wallet. But due to this modus operandi, Paytm was losing money as Paytm’s revenue model requires user to spend money within their network.

This 2% fee is applicable only on the use of credit card. There won’t be any fees on loading your wallet via debit card, net banking, UPI & IMPS. It’s interesting to note that if  a user will add more than Rs. 250 using the credit card then he will get a voucher equivalent to the 2% fee. The catch here is that this voucher can be used only on Paytm and can’t be used on any of its partner website of apps like Bookmyshow, Uber etc. Apart from this, this voucher comes with other terms and conditions which doesn’t allow use more than one such voucher in a single transactions. Also, the user will have to use the entire value in the voucher in go, which shouldn’t be a problem for most of the user as the voucher value might not be that high.

It’s is also worth noting that these charges are applicable only on loading your Paytm wallet, so, if a user use Paytm as a payment gateway to pay his utility, phone etc. bills and pay directly via Credit Card then no such fee would be charged.

What are your thoughts on additional fees of 2% for credit card users? Will this affect your Paytm wallet usage in any way? Do share your thoughts in the comments below.