Monday October 21, 2019
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Paytm Mall Gets Hit by a Cashback Fraud

Paytm Mall has so far managed to raise over $650 million from Alibaba, SoftBank and SAIF Partners

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Paytm Mall launches PoS solutions for retail stores, announces partnership with Asus
Paytm Mall launched PoS solutions for retail stores as well.

Paytm Mall on Tuesday said it has been hit by a cashback fraud which could be in the range of Rs 5-10 crore.

The fraud was detected through a tool that the company developed in partnership with global professional services firm EY (formerly Ernst and Young), said a Paytm Mall spokesperson.

He said Paytm went for a deeper audit after it found that some small sellers were getting large percentage of the cashbacks offered at Paytm Mall.

The audit reportedly revealed that a number of employees were colluding with junior employees to earn the cashbacks.

“The fraud is in the range of Rs 5-10 crore,” the spokesperson told IANS.

A brainchild of Paytm Founder and CEO Vijay Shekhar Sharma, the ecommerce platfom’s losses have mounted and in the financial year 2018, the company posted a loss of nearly Rs 1,800 crore on revenue of Rs 774 crore.

According to Forrester Research, the market share of Paytm Mall almost halved in 2018 — to 3 per cent from 5.6 per cent in 2017.

Paytm Logo. Wikimedia

“Our partnership with E&Y will help benchmark with global best practices as we build a technology driven fraud prevention system to scale our operations,” Srinivas Mothey, Senior Vice President – Paytm Mall, said in a statement on Monday.

“Our teams continue to work closely with E&Y to share our learnings and insights. We are committed to building a trusted commerce platform and will take strict action wherever needed,” Mothey added.

Over the past few years, Paytm has been bleeding massively in online retail business and there is no respite in sight.

Apart from admin, finance and other support functions, the company also has a business operations team which works closely with partnered merchants to plan and execute cashback offers and promotions leaving a scope for collusion.

Also Read- Indian Enterprises Realising Significance of Cloud Adoption: AWS

“The EY partnership will also undertake audit and fraud prevention using both human and Artificial Intelligence (AI),” said Paytm Mall.

Paytm Mall is far behind the top two e-commerce players in terms of market share. They have a single-digit share against the top leaders which are commanding over 30 per cent market share.

Paytm Mall has so far managed to raise over $650 million from Alibaba, SoftBank and SAIF Partners. (IANS)

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Paytm Mall Ties Up With Asus

Paytm Mall launches PoS system for retailers, ties up with Asus

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Paytm Mall launches PoS solutions for retail stores, announces partnership with Asus
Paytm Mall launched PoS solutions for retail stores as well.

Paytm’s ecommerce arm Paytm Mall on Wednesday launched its point-of-sale (PoS) system for retailers and its brand partners to manage their offline (walk-in) and online customers.

“Our Offline-to-Online (O2O) model is deeply in sync with what the offline shopkeepers need and hence we are offering a unified solution, Paytm Mall PoS,” said Paytm Mall Chief Operating Officer Amit Sinha.

“They can now cater to walk-in customers conveniently and can also fulfill online orders locally through this connected PoS system,” he said.

Paytm Logo
Paytm Logo (Wikimedia Commons)

Announcing its partnership with Taiwan-based electronics maker Asus for the PoS system, Sinha said: “We are enabling Asus branded offline stores and will soon be expanding further.”

Also Read: Paytm more preferred by Indian professionals than Google: LinkedIn

Paytm Mall further unveiled the exclusive online launch of Vivobook X507 on its platform that would be also available through Asus offline retail stores.

“We are excited to partner with Asus for the exclusive launch of Asus VivoBook X507 range on Paytm Mall and through Asus partnered offline stores,” Sinha said.

The device will be available starting at Rs 21,990 including Paytm Mall cashback of Rs 2,000 May 2.  (IANS)