Paytm has partnered with ICICI Bank for a short-term credit product for its customers with the product called ” Paytm-ICICI Bank Postpaid”.
It will allow customers to get interest free, short-term instant credit for regular use across bill payments, movie tickets and other purposes.
With an initial limit of 10,000, a customer can get 45 days of interest-free credit which will be increased depending on the customer’s repayment behavior.
Anup Bagchi, executive director ICICI Bank said: “We have seen that many customers—who are new-to-credit and therefore, do not have a credit history– are looking for short-term credit and millions of young Indians are now buying products online.
We have combined these two insights to bring out a novel proposition of giving short-term credit to people, completely online and instantly. In this endeavour, we have leveraged upon Big Data to develop a new algorithm that instantly assesses the credit worthiness of customers using a combination of financial and digital parameters to sanction the credit line instantly.”
As a start, Paytm-ICICI Bank Postpaid will offer the credit limit to select customers of the bank using the Paytm app. It will shortly be available to non-ICICI Bank customers using the Paytm app.
Vijay Shekhar Sharma ( Founder & CEO ) also said that
“It’s common for us to ask a trusted friend for money for frequent expenses and promise to pay later. These exchanges are based on trust that you will pay back as soon as you have access to money.
We believe our customers are sincere with their payments and Paytm Postpaid will play a major role in helping them pay for their daily expenses on time. This will democratise access to credit including those with less disposable income.
We are happy to launch credit in a digital way to the masses in the form of Paytm Postpaid with ICICI Bank as our first partner.”
Paytm has 270 million+ customers in India.
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