New Delhi: Fintech major ‘Paytm’ said Monday it will partner with various credit card issuers to introduce co-branded cards. Paytm said through this development it is aiming to add 20 lakh subscribers in the next 12-18 months.
Paytm, in a statement, stated 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. They can have full control over the card usage. It will be partnering with various card issuers to introduce co-branded cards. Paytm is aiming to issue two million cards in the next 12-18 months,” the fintech company stated.
Paytm informed that limited access to banking, stringent documentation, and long processing times have led the Indian credit card penetration to stand at only three per cent compared to 320 per cent 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 per cent 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 security PIN, updating 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.
“In our country, credit cards are still considered a product for the affluent sections of the society. 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 spends and to make well-informed decisions. This can transform the credit market by bringing ‘new to credit’ users into the formal economy,” Gupta added.