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Homegrown digital financial services platform Paytm plans to issue 20 lakh co-branded credit cards over the next 12 to 18 months for which it will partner with various card issuers.
In a statement on Monday, Paytm said it is working to democratise access to a formal credit system for the masses and is building the country’s ‘next generation credit cards’.
“The company is aiming to transform the credit market by enabling ‘new to credit’ users to join the digital economy,” it said, adding that it is designing an innovative digital experience on its app allowing users to manage their overall spends and have full control over the card usage.
Cardholders will have complete control to manage their transactions in real time, and there will be no need to visit the bank branch or call customer support.
“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. It will also have options to safeguard users against fraud by switching off the card for contactless payments or international transactions when not required,” it further said.
Paytm’s credit card will provide insurance protection against fraudulent transactions to protect users money.
Bhavesh Gupta, CEO, 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.”
Paytm had, in May last year, partnered with Citibank to launch its first credit card.
“With its digital application process, alternate (spends based) underwriting, and minimal documentation, Paytm aims to democratise the credit card access for masses and plans to capture at least 10 per cent of this largely untapped market,” it further said, adding that India’s credit card penetration stands at only three per cent compared 320 per cent in markets such as the United States.
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