Paytm Bank to now issue Visa debit cards

Paytm Payments Bank to now issue Visa debit cards

According to bankers, the finance minister nirmala sitharaman decision to have zero merchant discount rate (MDR, or merchant fees) on RuPay cards has caused loss to issuers. The card issuers were providing several benefits like cashback and lounge access to promote usage, which were funded by the merchant fees.

Paytm Payments Bank, the largest issuer of RuPay debit cards, said that it will now issue Visa cards and is targeting one crore of these next year.

The move comes in the wake of the the finance minister nirmala sitharaman barring banks from recovering any fees from merchants accepting RuPay cards.