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
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."