Ministry of Road Transport and Highways, in January 2020 made it mandatory for all private and commercial vehicles to have FASTags for payments at toll booths. Paytm, the digital payment services aggressively startup took this opportunity to sell the RFID tags to drivers and vehicle owners all over the country. So far, PayTm is the largest seller of the FASTags, and claims to have sold over 3 million tags.
Paytm Payments Bank (PPB) has recently entered into a strategic partnership with two of the largest ride-hailing companies OLA and Uber for selling FASTags. Under this partnership, the driver-partners of OLA and Uber will purchase FASTags from PPB. PPB has also renewed its exclusive payment partnership with Uber. PPB is aggressively campaigning the FASTag selling unit of its business. PPB aims to sell more than 1 lakh FASTags under this newly designed partnership.
MD and CEO of PPB Mr. Satish Kumar Gupta said that PayTm is very happy about the strategic partner and it welcomes all driver-partners to the formal banking system. He further said that Paytm has formulated a dedicated team to train the driver-partners for use of FASTags. To highlight the other benefits of being on the PPB platform, he says that the driver-partners are being encouraged to use PayTm for digital transactions.
Paytm FASTags have an advantage over other FASTags, as they do not need a separate prepaid account. Further, the toll fee is automatically deducted from the Paytm wallet, and the remaining balance can be used for shopping, recharges, bill payments amongst other transactions.