Get All Access for $5/mo

Paytm To Launch Credit Card; Aims To Issue 2 Million Cards In 12-18 Months The company said its credit card will democratise the access to a formal credit system for people

By Debarghya Sil

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Paytm
Vijay Shekhar Sharma, Paytm Founder

Vijay Shekhar Sharma-led Paytm on Monday announced that it's building "Next Generation Credit Cards' for the country to democratise its access. In a statement, the company said it is trying to transform the credit market by enabling "new to credit' users to join the digital economy.

The Noida-based company will be partnering with multiple card issuers to bring co-branded cards. It aims to distribute 2 million cards in the next 12-18 months.

With this launch, the company will give complete control to cardholders to manage their transactions in real time. It will also feature one-tap 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. It will be equipped with features to protect users against fraud by switching off for transactions.

The credit card will be covered with insurance against fraudulent transactions. Apart from these, the credit card will come up with personalized spend analyzer helping in assessing expenses and planning future spends. Paytm has digitized the credit card experience on its app from application, tracking to issuance of the credit card. The unicorn payment firm has said due to the seamless application process, chances for application to be rejected will drop, thus making more people to participate in the formal credit system.

Paytm credit cardholders will be rewarded with assured cashback in the form of Paytm Gift Vouchers on every transaction. The rewards point will have no expiry and users will also be able to utilize those for other payments in the Paytm ecosystem. The rewards will also comprise lifestyle benefits for card holders in form discount vouchers and complimentary membership across various categories.

Commenting on the latest development, Bhavesh Gupta, chief executive officer, Paytm Lending, said, "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. This can transform the credit market by bringing 'new to credit' users into the formal economy."

Debarghya Sil

Entrepreneur Staff

Former Correspondent

News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Franchise

Kick-Start Your Small Business With These Cost Effective Strategies

Starting a small business is an exciting adventure, brimming with both opportunities and challenges. A key to success is effectively managing costs from the outset.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.