Paytm extends postpaid services to kiranas, upgrades credit limit up to Rs 1 lakh

Fintech unicorn Paytmon Monday said it has expanded its postpaid services to kirana stores and local retailers, which can be availed to buy essentials like groceries and milk, and increased its credit limit to up to Rs 1 lakh of monthly spends.

Besides kiranas, the service will be available at stores such as Reliance Fresh, Haldiram's, Apollo HospitalsPharmacy, Croma, and Shoppers Stop, among others, the company said in a press statement.

Bill payments available on Paytm and Paytm Mall, and other internet applications including Tata Sky, Domino's, Pepperfry, Hungerbox, Patanjali and Spencer's, will also support using the fintech's postpaid services.

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Amit Nayyar, President at Paytm said in a statement:

"Paytm Postpaid is our mission to provide access to credit to every Paytm user. During this ongoing pandemic, it becomes more important for us to stand by fellow Indians and give them the power to buy on credit when required."

Paytm has introduced three variants of its postpaid service - Lite, Delite and Elite, which will be offered to users based on the company's partner-NBFC's assessment. While Postpaid Lite comes with limits up to Rs. 20,000 and a convenience charge, Delite and Elite offers credit limits from Rs. 20,000 to Rs. 1 lakh in monthly spends with no convenience charges.

Paytm is offering the postpaid service in partnership with two NBFCs. The increase in the credit limit will allow customers to make payments for high-value items like furniture and consumer electronics.

Last year in July, Paytm announced a partnership with digital NBFC Clix Finance to offers loans through Paytm Postpaid. Tata Capital and Indifiwere among Paytm's other NBFC partners.

A public litigation was filed against Paytm in May 2019, alleging that Paytm Payments banks, offering credit to its users, was against regulations. Paytm later clarified that the credit facility was being offered by ICICI Bank, and that the company only acted as a facilitator for the service.