Tax-exemptions are always welcome by corporates and individual employees and one startup that is all set to leverage this for their benefit is Paytm.
Digital wallet player Paytm has rolled out the Food Wallet feature on the Paytm app meant for corporates to issue tax-free employee benefits such as meal coupons and food vouchers. This new line of business will compete directly with existing players like Sodexo and Ticket Restaurant which issue physical coupons at present.
As per Kiran Vasireddy, senior vice president at Paytm,
“The biggest incentive for corporates to use our Food Wallet is the convenience it offers. Employers can use their laptops to instantly transfer money to food wallets of employees based anywhere in the country without any hassles of procuring, handling and distributing bulky coupons and cards. The Food Wallet comes with the complete suite of in-app security featu res available on Paytm such as app lock password, two-factor authentication and passcode among others,”
RBI has issued guidelines for all prepaid meal vouchers to go digital by end of 2017 with companies like Sodexo and others already moving to a prepaid card format. With this launch, Food Wallet is targeting the 6 million employee base.