Paytm enters into credit card business, planning 20 lakh subscribers in 18 months

The company will provide cashback to the credit users for every transaction in the Paytm ecosystem. The cards will be issued by partner banks to the customers based on their traditional credit score and purchase patterns on the Paytm app, the company said.

Paytm on Monday said it has planned to enter into the field of credit card business with an aim to add 20 lakh subscribers in 12-18 months. The company will be providing cashback to the credit users for every transaction in the Paytm ecosystem.

The cards will be issued by partner banks to the customers based on their traditional credit score and purchase patterns on the Paytm app, the company officials said. "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 the spendings to make well-informed decisions.

"This can transform the credit market by bringing 'new to credit' users into the formal economy," Paytm Lending CEO Bhavesh Gupta said. The entire process to file an application and issuing a card will be done digitally, the company said.

"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 use those for various payments in the Paytm ecosystem," the Paytm spokesperson added. 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.