Paytm on Monday said it has expanded its ‘Paytm Postpaid’ offering to cover neighbourhood kirana stores and retail chains like Reliance Fresh, Haldiram, Apollo Pharmacy, Croma, Shoppers Stop, among others.
Users can utilise Paytm Postpaid to buy grocery and home essentials, and make various bill payments as well.
The service is offered in partnership with two NBFCs that offer an instant credit line for various payments to Paytm app users.
“Seeing an increasing demand for consumer credit during the ongoing pandemic, the company has increased this credit limit up to Rs 1 lakh of monthly spends to enable payment for large items such as furniture and consumer electronics among others,” a statement said.
Initially, select users will be shown a ‘Postpaid’ icon in the Financial Services Section to avail ‘Paytm Postpaid’ post completion of their online KYC with the partner NBFC. The bill repayment can be done by the 7th of each month.
Paytm said the service would provide relief to Paytm users as the increased credit limit and a large set of use-cases will eliminate the need to withdraw cash for meeting monthly household expenses.
The company has introduced 3 variants of Postpaid – ?Lite, Delite and Elite – which will be offered based on partner NBFC’s assessment. While Postpaid Lite comes with limits up to Rs 20,000 and a convenience charge, Delite and Elite offer credit limits from Rs 20,000 to Rs 1,00,000 in monthly spends with no convenience charges.
It said Postpaid Lite has been designed so that users without excellent credit score are also able to avail the service. It added that there is no cost associated with activating and keeping Paytm Postpaid or any of its variants.
“Paytm Postpaid is our mission to provide access to credit to every Paytm user. During this ongoing pandemic, it becomes more important for us to stand by fellow Indians and give them the power to buy on credit when required,” Paytm President Amit Nayyar said.