Paytm has made two major announcements within a week, making its push for QR Codes evident.
The first announcement came on April 6, 2017 when Paytm added an inbuilt QR Code scanner to the Paytm app. The Paytm scanner allows users to scan any ‘non-Paytm’ QR Code
On April 10, 2017 came another announcement—the addition of online-to-offline (O2O) payment channel to Paytm Mall. Paytm Mall is Paytm’s e-market.
How Paytm O2O Payment System Works
O2O payment system allows people to place online orders at physical stores by scanning a QR Code.
Paytm will provide retailers with a unique QR Code. People can walk into a store and scan the QR Code using Paytm or Paytm Mall app. Here, people can browse and select the item they wish to buy.
This new system is a part of Paytm’s partnership with Samsung. Currently, the O2O system has been rolled out exclusively to sell Samsung mobile handsets. Paytm also plans to get other retailers from industries such as fashion, electronics, etc. onboard soon.
Paytm’s O2O system is targeted towards the section of people who still prefer to shop offline.
“Over 95% of the population in the country still shops offline. There is a trust that exists between an offline retailer and a customer. We want to create an offline network as a platform for brands to reach out to millions of consumers, thereby, optimizing the supply chain and marketing expenses on their behalf.” – Amit Bagaria, Vice President, Paytm Mall.
Benefits to Retailers
Besides benefiting consumers, the O2O QR Code system is expected to benefit retailers. When a buyer scans the Paytm QR Code, the retailer gets a commission on the sale. Besides the commission, the O2O system will allow retailers to sell products without having to stock up on inventory.
On QR Code payments, Mr. Bagaria adds,
“Paytm is the first company to invest in QR Code-based payment solutions and has created an offline merchant network where consumers can scan and pay. This is fast becoming ubiquitous for digital payments in the country. Paytm Mall will now leverage this technology and the network to create a platform for brands to reach out to a larger set of consumers.”
Besides this, retailers are using QR Codes to engage customers in many ways.
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