Business Standard: December 04, 2017
New Delhi: Furthering the digital money initiative, Paytm Payments Bank has rolled out Paytm FASTag to make payment of tolls at highway booths smoother.
This would enable electronic toll-fee collection on highways across the country. The company has entered into tie-ups with a host of automobile makers to make its radio frequency identification tag (RFID) a part of the bundle they give with cars. It is working with leading car and commercial vehicle manufacturers and dealers — including Maruti, Hyundai, Tata, Mercedes, Renault, BMW, Volkswagen and Volvo, among others — to make Paytm FASTag available for new vehicles purchased across India.
This announcement is in line with the government’s move to make FASTag mandatory on every new vehicle sold December 1 onwards. Paytm said: “In addition, old vehicle owners can buy FASTag online on the Paytm app. Customers using Paytm FASTag will get 7.5 per cent cashback on every toll transaction. The bank expects to cover over 1 million vehicles using Paytm FASTag by the end of this financial year.” The company said the FASTag can be placed on a vehicle’s windscreen to allow commuters to pass through 380 toll plazas across India without having to stop.
“Cash payments at toll plazas result in precious man-hours and fuel being unnecessarily spent, as attendants and motorists are left grappling with the hassles of dealing with change. Paytm FASTag will facilitate non-stop movement of vehicles through toll plazas and bring the benefits of cashless payments to every toll in India. Besides offering convenience to commuters, this will also improve transparency and overall efficiency of the country’s toll network,” Renu Satti, managing director and chief executive officer, Paytm Payments Bank, said.
Last month, the government had said from December 1 it would be mandatory for automobile manufacturers or authorised dealers to fix FASTag devices on the windscreens of all new four-wheelers.
The project is run in partnership with the National Highways Authority of India (NHAI) and the National Payments Corporation of India (NPCI). Each tag is linked to a registered Paytm account to facilitate instant automatic deduction of toll charges. In November alone, the bank has processed over a million FASTag toll transactions. Other fintech players, including MobiKwik, are also in talks with the government and would soon join the e-tolling race.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.