Paytm Bags NHAI Deal for Automatic Toll Collection
The National Highways Authority of India (NHAI) has awarded the Paytm the contract for automatic toll collections at highways in various states, which will enable vehicles to zip through toll plazas and pay their toll fee via their digital wallets.
According to Raghav Chandra, chairman, NHAI, Paytm has won 40 out of 350 toll booth in the starting phase.
After being successful in digital wallet and e-commerce businesses, the Noida-based technology firm is now looking at public-private partnership market in India. According to reports, the company may partner with the Indian Railways to offer digitized payment solutions.
As per the government recent initiatives, e-tolling will save time at toll gates and ease the traffic flow at highway toll plazas across the country.
In April, 2016, the NHAI had introduced e-tolling at three hundred toll plazas across India allowing vehicles with FASTag cards which enable vehicles to pay toll fee on the move.
The NHAI is encouraging people to pay toll fee via digital wallets by offering 10% discounts on digital payment platforms. The FASTags can be found at various branches of SBI, ICICI and Axis banks as well. The banks will get 1.5% of the electronic toll each time a vehicle pays toll fee via FASTag.
As per reports, Paytm has approached the Indian Railways for a partnership in which it will offer payment mechanism to passengers for purchasing tickets, snacks and parking fees among other services.