Noida-based fintech giant Paytm has revealed that it will offer interest-free credit for up to 30 days to its users as part of its BNPL model.
Paytm will provide credit up to Rs 60,000 and loans starting from Rs 250 to Rs 1,000 as part of its buy now, pay later service. Paytm also said that the small-ticket loans will not attract interest rates for up to 30 days and can be used at online and offline merchant stores across the country.
"We want to help new-to-credit citizens start their credit journey and develop a financial discipline.. Our new Postpaid Mini service helps users manage their liquidity by clearing their bills or payments on time." Bhavesh Gupta, Paytm Lending's CEO
Paytm in conjunction with Aditya Birla Finance Ltd, a non-banking financial company, will provide the service. The fintech also revealed that customers could use for expenses such as mobile and DTH recharges, gas cylinder booking, electricity, water bills, among others.
Paytm's Postpaid service has seen several takers who appreciate the ease with which the loans are dispensed. Postpaid Mini - the new service - can be used to pay at thousands of petrol pumps, Kirana shops, pharmacies, and chain outlets such as Reliance Fresh, along with eCommerce websites and offline retail stores.
Paytm is India's leading financial services company that offers full-stack payments & financial solutions to consumers, offline merchants and online platforms. The company was founded by Vijay Shekhar Sharma and is headquartered in Noida, Uttar Pradesh. The firm got the backings of Softbank, Ant Financial, AGH Holdings, SAIF Partners, Berkshire Hathaway, T Rowe Price, and Discovery Capital.
India in focus
GDP: $2.262 trillion compared to $2.871 trillion in 2019
Population: 1.38 billion in 2020 compared to 1.366 billion in 2019
GDP per capita: $1,900 in 2020 compared to $2,100 in 2019
