Paytm is not shutting down consumer lending product Paytm Postpaid
Digital payments company Paytm on Wednesday clarified that it isn’t stopping its consumer lending product Paytm Postpaid after its customer care handle accidentally tweeted that it is discontinuing the service as a response to a user query.
In a blogpost, Paytm said,
“We thank our users for their faith in our services. We would like to inform that your Paytm Postpaid service is active and operational.”
The company also clarified that Paytm Postpaid is now being issued by Clix Capital, with which it tied up in the last week of July, this year. Because of this, users are required to do their KYC again and the platform at present is managing huge requests for pending KYCs because of which users may not have been able to access their Paytm Postpaid account.
Vijay Shekhar Sharma, Founder of One97 Communications
Once KYC is completed, Paytm will be able to use it as before, added the payments company. This means that Paytm Postpaid has transferred its loan book to Clix Capital.
In May, a public interest litigation was filed against the company that Paytm Payments Bank was offering credit to its users, which was against regulations. To provide loans to its users, Paytm needs such tie-ups as it is not a certified NBFC itself.
The digital payments company also assured that there have been no changes in terms and conditions of use for the service. It added in the blogpost,
“Many of our users who have completed their KYC are already enjoying the benefits of Paytm Postpaid. Your Paytm Postpaid will soon come up with an increased spending limit basis your payment behaviour. There is no change in terms and conditions.”
Other NBFC partners of Paytm include Tata Capital and Indifi.
During its partnership with Clix, Paytm in a statement said the product offering from both entities will include ‘Deferred Payment or Postpaid’ and ‘Merchant Lines’ among other products for Paytm customers and merchants.
In addition to this, Clix and Paytm - both Gurgaon-based companies - would introduce more products, in the near future.
(Edited by Saheli Sen Gupta)