ICICI Bank ties up with Paytm to offer shortterm credit

MUMBAI: ICICI Bank Ltd has tied up with Pay tm, the largest digital payments platform in India, in orderto offer short-term credit to their common customers, the first such move by any Indian bank.

Paytm-ICICI Bank Postpaid will function like a virtual credit card and will help India’s largest private lender to assess the credit profile of customers who have no or minimal credit history.

Customers who are shopping through the Pay tm platform can choose the option to pay later and use the credit line offered by ICICI Bank.

The product is not available for offline customers yet and only those customers who have an account with I CI CI Bank and use Paytm to shop will be eligible for the product.

The credit limit has been set at ₹20,000 and the amount borrowed needs tobe re paid within 45 days.

“Beyond 45 days, the amount borrowed will attract a charge of 3%, similar to our credit card offerings,” said Anup Bagchi, executive director at I CI CI Bank.

The bank did not disclose information about the number of customers who will be immediately eligible for the product.

“Paytm-ICICI Bank Postpaid will enable more people to use Pay tm more often for daily needs. It will lead to near 100% transaction success rate as the payment flow will remain on Pay tm ,” said a Paytm spokesperson.