The demonetization by the central government in India brings a change that has created significant opportunities for many startups. While PayTM started pressing it to advantage right from the beginning, others are jumping in one by one. The newest being Freecharge.
From today onwards, the merchants who are signing up to accept payments through FreeCharge will not be charged any commission. This means that 100% of the payments made by users will be credited to the seller’s account.
This could be significant as it will motivate more and more merchants, especially the really small ones, to finally come on board the electronic era. Credit card companies normally deduct 2-4% of each payment made through them. Some merchants in India, in a frowned upon practice, have been passing on this extra expense to the customers. A practice that has, in turn, resulted in a reluctance on the part of the customer, to make an electronic payment.
Further, FreeCharge has also rolled out a faster, instant sign-up for merchants, which can be completed within 5 minutes. After signing-up, merchants will be able to immediately start accepting digital payments by using their smartphones. Also, there is no requirement of a separate machine to enable transactions using Freecharge. While in the case of debit and credit cards, separate machines need to be installed.
A few things Freecharge has done:
- 0% charge on the Merchant in transactions
- Instant signup for Merchants that can be completed in five minutes.
- No additional machine or hardware needed for transactions.
- Merchants who wish to register can give a missed call on 022 39966223 and Freecharge will call them back to help them with the registration.
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