NEW DELHI: Digital financial services major Paytm on Monday announced a ramping up of its presence in the co-branded credit cards segment, stating that it will partner with several credit card issuers and add 20 lakh subscribers to the service within the next 12-18 months.
This venture, it claimed, will transform the credit market by onboarding “new to credit” users joining the digital economy. Paytm had launched its first co-branded credit card, called ‘Paytm First’ in May last year, in partnership with Citigroup.
Speaking about the cards, Paytm said that “It will be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card and viewing outstanding credit-limit”. The cards will also boast options to switch off the card for contactless payments or international transactions when not required, something that the RBI has mandated from October 1 this year.
“This service will also come with a personalised spend analyzer helping in assessing expenses and planning future spends smartly,” the company said in a statement.
“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. These cards are designed to help them lead a healthier financial life through managing and analysing the spends to make well-informed decisions. This can transform the credit market by bringing ‘new to credit’ users into the formal economy,” said Bhavesh Gupta, CEO – Paytm Lending.
India still remains a strong debit-card tilted market, with credit card penetration standing at just 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 aims to democratise credit card access for the masses and plans to capture at least 10% of this largely untapped market,” the company said.