NEW DELHI: Paytm will operate toll booths that will enable vehicles to zip through toll plazas as their toll charges will be deducted from their digital wallets.Raghav Chandra, chairman for the National Highways Authority of India (NHAI), confirmed Paytm has won contracts for automatic toll collections at highways in various states. "We have awarded them 40 out of 350," Chandra said.Paytm did not respond to an emailed questionnaire sent on November 7.After its digital wallet and ecommerce businesses, Paytm is now eyeing large public-private partnership market in India. Apart from the NHAI contracts, the Noida-based technology firm is also in talks with the Railways for digitising payments mechanisms.Paytm has secured the contracts as part of the government's plans to let digital wallet companies manage its electronic toll service. Various branches of SBI, ICICI Bank and Axis Bank are selling tags for use on such e-tolling gates.Banks issuing such tags will receive 1.5% of the electronic toll revenue every time a vehicle pays using such tags. However, no decision has been taken on Paytm proposal.

Source: Economic Times November 17, 2016 19:17 UTC