Digital payment startup Paytm has partnered with Delhi Metro Rail Corporation (DMRC) to enable the country's first FASTag-based metro parking facility. Paytm Payments Bank Ltd (PPBL), which is the acquiring bank for the parking site at the Kashmere Gate metro station, said that it will collect parking fees via FASTag. Paytm FASTag will eliminate the need for stopping the car.
Paytm Payments Bank will also allow two-wheelers at the parking facility to pay using UPI. DMRC Managing Director Mangu Singh called it a step towards digitalisation and said that contactless transactions are the need of the hour.
A FASTag is an electronic toll collection system operated by NHAI. It uses Radio Frequency Identification (RFID) technology to collect toll payments directly from a linked account. It is fixed in the front of the vehicle and allows to drive through tolls without stopping for payments.
In a statement, Paytm said, "PPBL will digitalise parking facilities across the country with Kashmere Gate metro station being the first one to be powered by the bank's digital payment solution." It stated that the bank is working with civic bodies across states to initiate FASTag-based parking facilities both at organised and unorganised sites.
PPBL added that the bank is working with various stakeholders to provide digital payment solutions for parking areas at hospitals, shopping malls and airports.
"It has been our endeavour to expand the FASTag network in our country. In this quest, we are excited to partner with the Delhi Metro Rail Corporation for enabling digital payment solutions at their parking facility," PPBL managing director and CEO Satish Gupta said, "We will continue to work with other parking providers across the country to adopt a safe and contactless payment solution by implementing the FASTag system."
In July, Paytm became the first ban to issue one crore FASTags. According to the National Payments Corporation of India (NCPI) more than 3.47 crore FASTags were issued by all financial institutions together till the end of June 2021. PPBL had also informed that of the total 851 toll plazas across the country, 280 are using Paytm's payment gateway.