Paytm lets you use UPI now and pay next month
What's the story
Paytm, the leading digital payment platform in India, has launched a new feature called Paytm Postpaid. The service, developed in partnership with Suryodaya Small Finance Bank (SSFB), offers users a credit line on UPI. It allows them to "spend now and pay next month," giving up to 30 days of interest-free credit. The initiative is powered by the National Payments Corporation of India (NPCI) and leverages Paytm's existing UPI payment infrastructure.
Service details
Service available for payments across merchant UPI QR codes
The Paytm Postpaid service can be used for payments across any merchant UPI QR code, online shopping platforms, or within the Paytm app itself for services like recharges, bill payments, and bookings. The feature is being rolled out to a select set of users based on their spending behavior and will be expanded further in the coming months.
User benefits
New feature to provide more flexibility to users
Avijit Jain, Paytm's COO of Lending, said the new feature is aimed at providing families and individuals with more flexibility in managing their household and personal expenses. Vishal Singh, CIO and Head of Digital Banking at SSFB, echoed this sentiment by saying that the collaboration reflects the bank's commitment to making responsible credit accessible to more people.
Activation process
How to use Paytm Postpaid service?
To use the service, consumers have to activate it by completing KYC verification and linking their UPI account through the Paytm app. The process involves authentication with Aadhaar and setting up a UPI PIN for payments using the linked credit line. Both Paytm and SSFB have assured that this offering is backed by regulated banking infrastructure to ensure compliance and security.