Digital payments and commerce platform Paytm is entering the traditional meal voucher market. In what is being called food wallet by the Noida-based company, it has partnered with about 10 companies where these firms can top up wallets of their employees.
This can be claimed for tax sops as per government approved rules, the company said in a statement.
This makes Paytm a direct competitor to companies like Sodexo, Ticket Restaurant, Zeta among others. RBI has also said that all meal-voucher companies must switch over to electronic formats by year-end.
With backing of investors like Alibaba, Paytm could change the status quo in market but much would depend on how many employers it can get on its platform for this business.
According to a senior executive in the company, the meal voucher solution being digital removes hassles of procuring, handling and distributing bulky coupons and cards.