Paytm, the Indian digital payment and technology platform on Monday said that it will be “partnering with various card issuers to introduce co-branded cards” in the market. The company said that it is keen on transforming the credit card market by enabling ‘new to credit’ users to be part of the credit card user base. Paytm said that its ‘Next Generation Credit Cards’ are intended to “democratise the access to a formal credit system for the masses.” The company in a release said that it intends to issue two million cards in the next 12 to 18 months.
Paytm said that its co-branded cards would provide “complete control” to the cardholders to handle their transactions in real-time.
“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,” Bhavesh Gupta, CEO, Paytm Lending, said in the release. “At Paytm, our aim is to provide credit cards that benefit India’s aspiring youth and evolved professionals.”
The company said that its upcoming co-branded cards will feature “one-touch services” that would enable users to change security pin number, update address, block the card or request duplicate card.
Paytm highlighted that the users are not required to visit a branch or call customer care support and that it has “digitised the entire credit card experience” on its app.
“These cards are designed to help them lead a healthier financial life through managing and analysing the spends to make well-informed decisions,” Gupta said. “This can transform the credit market by bringing ‘new to credit’ users into the formal economy.”
Paytm said that the app will enable users to pick a “convenient time” for the collection of documents with the platform than providing users to check progress on card issuance and delivery.
“The seamless application process will reduce the rate of application rejections and will enable more people to participate in the formal credit system,” the company said in the release. “Paytm Credit cards will have a transparent & compelling rewards program with assured cashback on every transaction.”
The company highlighted that the reward points on its upcoming credit cards will have no expiry and that users will be able to utilise those points for “various payments” within Paytm ecosystem.
It has to be noted that Paytm in 2019 had launched its co-branded credit card with Citi. The Paytm First Card offers multiple benefits to users such as 1% cashback on transactions and annual fee waiver if user transaction exceeds Rs 50,000 per year.