Fintech giant Paytm could sacrifice its commission on the government-backed Open Network for Digital Commerce (ONDC) to bring in more customers to the platform.
What Happened? The payments major is likely to wave the 3% cut it takes on orders as a buyer app for sellers that have no complaints lodged against them, Economic Times reported, citing sources.
Paytm currently contributes a third of the orders on the ONDC, which aims to provide a cheaper, decentralised alternative to platform-based delivery models, such as those of Swiggy and Zomato.
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Since its launch, the ONDC has generated quite a storm online, with users sharing social media posts about how much cheaper food delivery was on the open network, as compared to existing platforms. Initially, the ONDC was offering logistics players deep discounts of ₹75 on each eligible delivery but has since toned down the discounts.
The birth of the ONDC has been viewed by many as an existential threat to the likes of Swiggy and Zomato. However, several analysts have brushed off concerns about any major threat to the businesses of these foodtech giants from the open network.
Price Action: Paytm’s shares were down 1.37% to close at ₹689.60 on Friday.
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