Paytm to issue 2 million credit cards in next 12-18 months

In collaboration with various card issuers, Paytm said it would issue two million cards to customers in the next 12-18 months to introduce co-branded credit cards.

Paytm also announced the creation of 'Next Generation' credit cards, including insurance cover against fraudulent purchases, a customised spending analyser, and instant one-touch services for security pin change, card blocking and address updating.

The company has digitised the credit card experience on the Paytm app to include a digital application process to help customers monitor the issuance of their new credit card. It also provides the flexibility to select a suitable time for the collection of documents on the app.

The first co-branded credit card introduced by Paytm in collaboration with Citigroup in May was 'Paytm First'. The business now aims to grow into the credit market by encouraging 'new to credit' customers to enter the digital economy through this offering.

Mr. Bhavesh Gupta, CEO - Paytm Lending in a statement, said, "In our country, credit cards are still considered a product for the affluent sections of the society and not everyone can avail of its benefits. 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 analysing the spends, to make well-informed decisions."

Mr. Gupta added, "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 and complimentary memberships across travel, entertainment, food, and many such categories."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.