Paytm Credit Cards aim to democratize credit card access for masses

India's credit card penetration stands at only 3%, which is very low as compared to 320% in markets such as the United States and with the Paytm Credit Cards, the company aims to democratize the access to credit cards for masses which are still considered a product for the affluent sections of the society.

Paytm, India's largest digital financial services provider, announced today that it will introduce credit cards that will enable 'new to credit' users to join the digital economy. The company aims to issue two million cards in the next 12-18 months and capture at least 10% of this largely untapped market in the country.

"We are proud to share that we are building our country's "Next Generation Credit Cards" designed to democratize the access to a formal credit system for the masses," Paytm wrote in a blog post.

India's credit card penetration stands at only 3%, which is very low as compared to 320% in markets such as the United States and with the Paytm Credit Cards, the company aims to democratize the access to credit cards for masses which are still considered a product for the affluent sections of the society.

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 analyzing 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

The Paytm Credit Cards will give complete control to cardholders, allowing them to manage their transactions in real-time. Paytm will provide 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.

Further, Paytm will provide the option to switch off the credit card for contactless payments or international transactions when not required along with insurance protection against fraudulent transactions.

"All this makes for a wholesome customer experience, where the entire universe of services related to the credit card account can be availed of. There is absolutely no need to visit the bank branch or call customer support," Paytm said.

From the application process to tracking and issuance of the credit card, customers will get a digitized experience for the entire process on the Paytm app itself. Additionally, users will get the flexibility of choosing a convenient time for the collection of documents and card delivery on the app.

Paytm Credit Cards will come with a rewards program with no expiry date for the rewards point and assured cashback on every transaction. Users will be able to use these points for payments in the Paytm ecosystem while the cashback amount can be spent anywhere.