Paytm to launch credit cards soon, to issue around 20 million cards in 18 months

The move is aimed at transforming the credit market by enabling "new to credit" users to join the digital economy, the company said.

Paytm will be partnering with various card issuers to introduce co-branded cards and is aiming to issue two million cards in the next 12–18 months.

The move is aimed at transforming the credit market by enabling "new to credit" users to join the digital economy, the company said. Paytm also announced that building ‘Next generation’ credit cards which include - insurance protection against fraudulent transactions, a personalised spend analyser, and will offer instant one-touch services for changing of security pin, blocking the card and updating address.

"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. These cards are designed to help them lead a healthier financial life through managing and analysing the spends to make well-informed decisions. This can transform the credit market by bringing ‘new to credit’ users into the formal economy," Bhavesh Gupta, CEO - Paytm Lending, said in a statement.

PayTM, in association with CitiBank has already launched its first co-branded credit card by the name of PayTM First. Paytm First Card is a credit card exclusive for Paytm customers. Paytm customers can get this card by applying for the card on the Paytm app.

The Paytm First card can be used in both online and offline transactions. The card can be used to make payments at any merchant establishment that accepts VISA cards. One can also use the Paytm First card for online transactions, international transactions and to add money your Paytm wallet once you have enabled the card on the Citi Mobile App or Citibank Online.

Paytm the First card offers multiple benefits to its customers such as unlimited 1% cashback with the convenience of auto-processing. It also comes with complimentary Paytm First membership for 1 year.

Paytm Credit cards will have a transparent & compelling rewards program with assured cashback on every transaction. The accrued rewards point will have no expiry and users will also be able to utilize those for various payments in the Paytm ecosystem. Since the cashback will be received directly in the form of Paytm Gift Vouchers, they can be spent anywhere. It will also give great lifestyle benefits for the users in the form of discount vouchers & complimentary memberships across travel, entertainment, food, and many such categories.

India’s credit card penetration stands at only 3% compared to 320% in markets such as the United States. With its credit cards, the company aims to democratize credit card access for the masses and plans to capture at least 10% of this largely untapped market. Nse india limited

"Indian government plans are to regulate and prevent the possible abuse of Indian corporate structure by the foreign investor companies and to foil any probable security threat in operation of Indian companies", said an expert on the condition of anonymity.

Paytm, which also counts Chinese tech giant Alibaba and Berkshire Hathaway among its backers, expects to become profitable within 12 to 18 months, said Deora, a former investment banker who joined the start-up in 2016.

One of India’s most valuable start-ups, Paytm began a decade ago as a platform for mobile recharges but it now sells things ranging from flight tickets to mutual funds. It competes with Google Pay, Walmart’s PhonePe and Amazon Pay in India’s digital payments market, which is set to more than double in value to $135 billion by 2023 from 2019.

To put an end to speculation in the market, Deora said "We want to go public only as a profitable company," without specifying any timeline for a listing.

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