The company has digitised the credit card experience on the Paytm app - to include a digital application process, and help customers track issuance of their new credit card
Noida-based financial services company, Paytm said that it will be partnering with various card issuers to introduce co-branded credit cards, as it plans to issue two million cards to customers in the next 12-18 months.
Along with this the company also announced that it has been building ‘Next generation’ credit cards which include - insurance protection against fraudulent transactions, a personalised spend analyser, and will offer instant one-touch services for changing of security pin, updating address, and blocking the card.
Along with this, the company has digitised the credit card experience on the Paytm app - to include a digital application process, and help customers track issuance of their new credit card.
It also offers the flexibility of choosing a convenient time for the collection of documents, on the app
Paytm had launched its first co-branded credit card, called ‘Paytm First’ in May, last year, in partnership with Citigroup.
Through this offering, the company is now looking to expand into the credit market by enabling 'new to credit' users to join the digital economy. To curb frauds, Paytm will also offer users the option of ‘switching off’ the credit card for contactless payments or international transactions, when not required.
"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. These cards are designed to help them lead a healthier financial life through managing and analysing the spends, to make well-informed decisions," Bhavesh Gupta, CEO, Paytm Lending.
According to Gupta, the accrued rewards point will have no expiry and users will also be able to utilise those for various payments in the Paytm ecosystem.
“Since the cashback will be received directly in the form of Paytm Gift Vouchers, they can be spent anywhere. It will also give great lifestyle benefits for the users in the form of discount vouchers and complimentary memberships across travel, entertainment, food, and many such categories," Gupta added.
India’s credit card penetration currently stands at only 3%, as compared to 320% in markets such as the United States.
Several players including e-commerce firms Amazon and Flipkart, as well as neo-banking platforms like NiYO and OPEN have moved to issue pre-paid, forex and credit cards, bridging the credit gap in the country.
Even mobility firm Ola, offers an ‘OlaMoney’ credit card to its customers as an extension of its credit operations in association with State Bank of India, capturing new to credit users.
India’s latest unicorn and online payment gateway provider, Razorpay forayed into the space with the launch of its corporate credit card last year and recently said that it plans to expand the offering to newer businesses and corporates.