Digital financial services platform Paytm on Monday said it would be partnering with various card issuers to introduce co-branded credit cards, with an aim to issue two million such cards in the next 12-18 months.
In a statement, the company said it had designed digital experience on its app that would allow users to manage their overall spends and have full control over the card usage. These credit cards will be issued based on the traditional credit score as well as the user’s purchase patterns on Paytm.
“Our aim is to provide credit cards that benefit India’s aspiring youth and evolved professionals,” said Bhavesh Gupta, CEO, Paytm Lending.
“The cards are designed to help them lead a healthier financial life,”he added. through managing and analysing the spends to make well-informed decisions. This can transform the credit market by bringing ‘new-to-credit’ users into the formal economy.”
India’s credit card coveragepenetration stands at about 3% compared with 320% in markets such as the United States, the company noted, adding that with its digital application process, alternate (spend-based) underwriting, and minimal documentation, it aims to capture at least 10% of this largely untapped market.
The service will also include options to safeguard users against fraud by switching off the card for contactless payments or international transactions when not required.
“Paytm’s credit card will provide insurance protection against fraudulent transactions to protect users’ money. This service will also come with a personalised spend analyser helping in assessing expenses and planning future spends smartly.”