Ecommerce and payments platform Paytm is exponentially expanding its vast area of payment facilitations. This time around, the Noida-based company has rolled out a Food Wallet to provide tax saving opportunities for corporate employees.
This move will allow companies to pass on food allowance to employees under the Government-approved tax-redemption bracket. The allowance on the Food Wallet will be digital, eliminating the risk of loss and expiry. The Food Wallet will be available in the Paytm app.
Speaking at the launch, Kiran Vasireddy, Senior Vice President – Paytm said, “Paytm food wallet will revolutionise the traditional meal voucher space and will benefit all stakeholders – employers, employees, and food retailers. Corporate employees can now pay for their food and beverages using their mobile on the go and keep a track of all payments made on the app. This will offer great convenience when compared to the traditional instruments like paper vouchers and will have tax benefits too.”
Employees will be able to see real-time balance in the app’s passbook and locate outlets around them by using the ‘Nearby’ feature. The wallet can be used at office cafeterias, online, and physical merchants including small standalone outlets. The list includes KFC, Burger King, Zomato, Pizza Hut, Café Coffee Day and Big Bazaar among others. Users will also have access to added benefits like exclusive deals, discounts, and cashback.
On the other hand, employers will be able to transfer money instantly via the food wallet. As per a company statement, the solution is already live at a few corporate offices. The Food Wallet is valid for payments related to food and beverages only so can be used at a grocery store, super market, fast food joint or fine dining restaurant.
As per a report by Indiaretailing, India has a market of about 8 Mn-10 Mn users for meal vouchers. However, only a million people actually use it. The meal vouchers market in India is dominated by Sodexo. As per a company statement, Sodexo’s meal benefit offerings include meal cards, meal vouchers and cafeteria cards. It claims to reach out to over 2.7 Mn daily consumers across 1,500+ cities servicing through over 30,000 Merchants.