India’s leading digital financial services platform Paytm has today 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.
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. 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.
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 & delivery. The seamless application process will reduce the rate of application rejections and will enable more people to participate in the formal credit system.
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.
Given the limited access to banking, stringent documentation and long processing times, India’s credit card penetration stands at only 3% compared 320% in markets such as the United States. With its digital application process, alternate (spends based) underwriting, and minimal documentation, Paytm aims to democratise the credit card access for masses and plans to capture at least 10% of this largely untapped market.
