Paytm has joined hands with ICICI Bank to launch Paytm-ICICI Bank Postpaid to provide short-term digital credit to customers.
Mobile payment and commerce platform Paytm has joined hands with ICICI Bank to launch Paytm-ICICI Bank Postpaid in a bid to provide short-term digital credit to customers. This new offering will enable millions of Paytm customers to get access to instant credit for the first time for everyday use, ranging from movies to bill payments to flights to physical goods, Paytm said.
According to the company, Paytm-ICICI Bank Postpaid is a digital credit account with instant activation — with no hassles of documentation or branch visit, while activation is fully online. There is no transaction, joining or hidden administration fees either. Available 24×7 and on all days, it is based on a new Big Data-based algorithm by ICICI Bank for real-time credit assessment of customers. The algorithm uses an intelligent combination of financial and digital behaviour of the customer, including credit bureau check, purchase patterns, frequency of purchase to ascertain the credit – worthiness of a customer within a few seconds.
Based on the credit-score of the customer, the bank offers up to 45 days interest-free credit limit. It ranges from Rs 3,000 to Rs 10,000, extendable up to Rs 20,000 based on the repayment history. Paytm-ICICI Bank Postpaid will also offer a quick checkout to customers with the Paytm Passcode.
As a start, Paytm-ICICI Bank Postpaid will offer the credit limit to select customers of the bank using the Paytm app. It will shortly be available to non-ICICI Bank customers using the Paytm app. Once the credit limit is set up for a customer, a consolidated bill is generated on the first day of the next month, which has to be paid by the 15th day of the same month. Customers can use their Paytm Wallet, debit card or internet banking of any bank for an easy repayment of their dues.
Talking about this initiative, Anup Bagchi, Executive Director, ICICI Bank, said, “ICICI Bank revolutionised the consumer loan business in the country. We provide a host of personal loans and credit cards to millions of customers. We are now witnessing two distinct new trends: One, many customers—who are new-to-credit and therefore, do not have a credit history– are looking for short-term credit. Two, millions of young Indians are now buying products online. We have combined these two insights to bring out a novel proposition of giving short term credit to people, completely online and instantly. In this endeavour, we have leveraged upon Big Data to develop a new algorithm that instantly assesses the credit worthiness of customers using a combination of financial and digital parameters to sanction the credit line instantly.”