So what’s that the users are doing?
An Indiatimes report today brought to our notice that people were using their credit cards to transfer money to their Paytm wallet and then to their bank accounts. So how does it help the users? While the usage of credit card earned them loyalty points from bank, which in effect is free cash, having money in their savings account earned them interest. Then after 45 days they can close of the credit card without incurring any interest?. It’s not for nothing that Indians are called the kings of Jugaad.
So let’s say you filled its Paytm with ₹ 10,000 using your credit card and then transferred it to your bank account, you ended up earning loyalty points for using the credit card and interest from the bank for having money saved in your savings account.
“We were really shocked and disgusted, when we realised what was happening. And we have blocked the cards of users, who were using this loophole in the system to their advantage,” said the Paytm CEO, Vijay Shekhar Sharma.
So what is the company doing to tackle this?
Just a day after the loophole was discovered, the company announced that it will be charging 2% interest to all customers who were using Credit Cards to charge their wallets. The step, however, sparked an instant outrage and protests and the company had to withdraw the move in no time. The move is apparently aimed at keeping “users’ convenience in mind.”
So is the loophole still open?
Yes!!. The company said that it is blocking users who were taking undue advantage of the loophole an is currently devising ways to curb the misuse. And until then, it is a source of free money for all.
However, we, at Chikbuk, would urge all users not to get in to such malpractices which undermines the whole purpose of the mobile wallet. We have to support home grown companies like Paytm so that we are ready to take on the multi-national giants that is taking advantage of us .