Paytm forays into co-branded credit cards, aims to add 20 lakh subscribers in 18 months
Fintech major Paytm on Monday said it will partner with various credit card issuers to introduce co-branded cards and is aiming to add 20 lakh subscribers in the next 12-18 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.
"Paytm is designing an innovative digital experience on its app, allowing users to manage their overall spends and have full control over the card usage. It will be partnering with various card issuers to introduce co-branded cards and is aiming to issue two million cards in the next 12-18 months," it added.
Paytm said limited access to banking, stringent documentation, and long processing times have led the Indian credit card penetration to stand at only 3 percent compared to 320 percent in markets such as the US.
With its digital application process, alternate (spends-based) underwriting, and minimal documentation, Paytm said it aims to democratise the credit card access for the masses and capture at least 10 percent of this largely untapped market.
With this service, Paytm is targeting to give complete control to cardholders to manage their transactions in real-time, it noted.
It will be equipped with instant one-touch services such as change of the security PIN, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card, and viewing outstanding credit-limit, the statement said.
There will also be options to safeguard users against fraud by switching off the card for contactless payments or international transactions when not required, and Paytm's credit card will provide insurance protection against fraudulent transactions to protect users' money.
The service will also come with a personalised spend analyser, helping in assessing expenses and planning future spends smartly, the statement said.
Paytm credit cards will have a transparent rewards programme with assured cashback on every transaction, it said, adding that the accrued rewards point will have no expiry and users will also be able to utilise those for various payments in the Paytm ecosystem.
"In our country, credit cards are still considered a product for the affluent sections of the society and not everyone can avail of its benefits. At Paytm, our aim is to provide credit cards that benefit India's aspiring youth and evolved professionals," Paytm Lending CEO Bhavesh Gupta said.
These cards are designed to help them lead a healthier financial life through managing and analysing the spends to make well-informed decisions, he added.
"This can transform the credit market by bringing 'new to credit' users into the formal economy," he said.