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Paytm expands ‘Postpaid’ lending services to kiranas, offline retail

Paytm Postpaid is offered in partnership with two non-banking financial companies with an instant credit line for various payments to Paytm app users.

Paytm expands ‘Postpaid’ lending services to kiranas, offline retail

The service has also been extended to various bill payments facilities available on Paytm, shopping on Paytm Mall, and online payments at Internet apps. (Photo: Paytm)

Digital payments major Paytm on Monday announced has expanded the scope of its consumer lending product Paytm Postpaid to offline retail and kirana stores.

This includes Reliance Fresh, Haldiram, Apollo Pharmacy, Croma, Shoppers Stop, among others. The service will help users eliminate the need to withdraw cash to meet monthly household expenses, the company said.

Kiranas and neighbourhood stores had remained functional during the harshest phase of the covid-19 lockdowns, pushing many technology firms to look at innovating products to tap this segment.

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Paytm Postpaid is offered in partnership with two non-banking financial companies with an instant credit line for various payments to Paytm app users. “Paytm Postpaid is our mission to provide access to credit to every Paytm user,” Amit Nayyar, President at Paytm, said in a statement

“During this ongoing pandemic, it becomes more important for us to stand by fellow Indians and give them the power to buy on credit when required.”

The service has also been extended to various bill payments facilities available on Paytm, shopping on Paytm Mall, and online payments at Internet apps such as Domino’s, Tata Sky, Pepperfry, HungerBox, Patanjali, Spencer’s, among others, the company said.

Initially, select users will be shown a Postpaid icon in the Financial Services section to avail Paytm Postpaid post completion of their online know your customer (KYC) guidelines with partner NBFC.

The bill repayment can be done by the 7th of each month or earlier. Paytm Postpaid offers a passbook to analyse monthly spends to plan everyday expenses.

The company has introduced three variants of Postpaid — Lite, Delite and Elite- which will be offered based on partner NBFC’s assessment.

While Postpaid Lite comes with limits up to Rs 20,000 and a convenience charge which will be added to the monthly bill, the Delite and Elite offer credit limits from Rs 20,000 to Rs 100,000 in monthly spends with no convenience charges, Paytm said.

However, there is no cost associated with activating and keeping Paytm Postpaid or any of its variants, the company added.

“We are excited to expand this service for payments at kirana and online stores that play an important role in the whole neighbourhood and online shopping experience. We will keep expanding the offering to include more and more Paytm users,” Nayyar said.

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