Paytm enters co-branded credit card biz, to add 2 mn users in 18 months

Paytm, in a statement, said it is aiming to transform the credit market by enabling ''new to credit'' users to join the digital economy

Topics
Paytm | Credit cards | Digital economy

Press Trust of India  |  New Delhi 

Paytm
Paytm said limited access to banking, stringent documentation, and long processing times have led the Indian credit card penetration to stand at only 3 per cent compared to 320 per cent in markets such as the US

Digital financial services firm on Monday said it has forayed into co-branded credit card business with an aim to add 20 lakh subscribers in 12-18 months.

The company will provide cashback to the credit users for every transaction in the ecosystem.

The cards will be issued by partner banks to the customers based on their traditional credit score and purchase patterns on the app, the company said.

"At Paytm, our aim is to provide that benefit India's aspiring youth and evolved professionals. These cards are designed to help them lead a healthier financial life 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," Paytm Lending CEO Bhavesh Gupta said.

The entire process to file an application and issuing a card will be done digitally, the company said.

"Paytm will have a transparent and compelling rewards program with assured cashback on every transaction. The accrued rewards point will have no expiry and users will also be able to utilise those for various payments in the Paytm ecosystem," the statement said.

Paytm will provide cashback in the form of Paytm Gift vouchers and not cash credit in the cards. The company said that the vouchers can be used anywhere.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, October 19 2020. 17:48 IST
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