Leading digital financial services platform Paytm, on October 19 announced that it is building the country’s “next generation credit cards” designed to democratise the access to a formal credit system for the masses.
The company is aiming to transform the credit market by enabling “new to credit” users to join the digital economy.
“Paytm is designing an innovative digital experience on its app allowing users to manage their overall spends and have full control over the card usage. It 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 company said in a statement on October 19.
With this service, Paytm aims to give complete control to cardholders to manage their transactions in real-time. It will be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card and viewing outstanding credit-limit.
It will also have options to safeguard users against fraud by switching off the card for contactless payments or international transactions when not required.
Paytm’s credit card will provide insurance protection against fraudulent transactions to protect users’ money. This service will also come with a personalized spend analyzer helping in assessing expenses and planning future spends smartly.
The company has digitised the entire credit card experience on the Paytm app – from the application process to tracking & issuance of the credit card. It offers the flexibility of choosing a convenient time on the app itself for the collection of documents along with online tracking of card issuance and delivery.
“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 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,” the company stated.
Bhavesh Gupta, CEO – Paytm Lending said: “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.”