In a bid to offer hassle-free toll plazas to the commuters, digital payments giant Paytm is planning to process 10 lakh FASTag stickers by the end of March next year. This target is an extension to the earlier quota of one million FASTag toll transactions that the brand completed in November.
The Paytm FASTag is a simple and reusable tag based on radio-frequency identification technology (RFID) that will be affixed on a vehicle’s windscreen.
Paytm Payments Bank has joined hands with the National Payments Corporation of India (NPCI) and National Highways Authority of India (NHAI) to enable digital toll collections. It has also partnered with major automobile brands and dealers like Maruti, Hyundai Tata among others.
The digital toll plazas will be operated by RFID (radio frequency identification technology). RFID will allow nonstop passage to the vehicles through 380 toll plazas across 55,000 kms of national highways. The toll amount will be deducted automatically from the customer’s account connected to the tag. This account would be powered by Paytm payments bank account.
Customers can avail 7.5 per cent cash back on every toll payment using Paytm.
“The Paytm FASTag will 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,” said Renu Satti, Chief Executive Officer, Paytm Payments Bank.