With an aim to generate more credit flow, Paytm has tied up with two undeclared non-banking financial companies (NBFCs) to expand the use cases of its digital credit services Paytm Postpaid.
The company believes that this will eliminate the need for monthly cash withdrawals for household expenses.
Paytm has extended its postpaid services to Kirans and offline stores with an extended credit limit of up to Rs 1 lakh, which will allow customers to pay for other expensive items such as furniture and consumer electronics.
Paytm postpaid services are divided into three categories – Lite, Delete and Elite. This partner will offer credit based on NBFC assessment.
Postpaid Lite will offer loans up to INR 20K and will come with a convenience fee which will be added to the monthly bill. Lite services allow customers to enjoy the convenience and benefits of the Paytm postpaid service without having an “excellent” credit score. Delite and Elite offer loans ranging from INR 20K to INR 1 lakh on monthly expenses, without any convenience charges.
“Paytm Postpaid is our mission to give every Paytm user access to credit. During this ongoing epidemic, it becomes important for us fellow Indians to stand up and give them the power to buy credit when needed, ”Paytm President Amit Nayyar said in a press note.
Paytm will expand services to include various bill payment facilities available on Paytm, shopping on Paytm Mall, and online payments on internet apps such as Domino’s, Tata Sky, Pepperfry, Hungerbox, Patanjali and others.