Paytm enters co-branded credit card biz, aims to add 20 L subscribers in 1.5 years
NEW DELHI: 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 1218 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 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 besides 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, it said.
Paytm Credit cards will have a transparent rewards programme with assured cashback on every transaction, it said.
Paytm said limited access to banking, stringent documentation, and long processing times have led the Indian credit card penetration to stand at only 3 per cent compared to 320 per cent in markets such as the US