Paytm has forayed into co-branded credit card business with an aim to add 20 lakh subscribers in 12-18 months.
The company, owned by Vijay Shekhar Sharma's One97 Communications Ltd., will provide cashback to credit users for every transaction in the Paytm ecosystem. The cards will be issued by partner banks to customers, based on their traditional credit score and purchase patterns on the Paytm app.
“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,” Paytm Lending CEO Bhavesh Gupta said. "This can transform the credit market by bringing ‘new to credit' users into the formal economy,”
The entire process to file an application and issuing a card will be done digitally.
"Paytm credit cards will have a transparent and compelling rewards program with assured cashback on every transaction. The accrued rewards point will have no expiry and users will also be able to utilise those for various payments in Paytm ecosystem,” the statement said.
Paytm will provide cashback in the form of Paytm gift vouchers and not cash credit in the cards. The company said that the vouchers can be used anywhere.
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