Paytm has partnered with ICICI Bank to jointly launch Paytm-ICICI Bank Postpaid, a interest-free short-term digital credit service that will offer instant credit to Paytm account. It has instant activation without any documentation or branch visit and there is no transaction, joining or hidden administration fees either, says Paytm.
It is available 24×7 and on all days and 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 upto Rs 20,000 based on the repayment history. It will also offer a quick checkout to customers with the Paytm Passcode.
“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,” said the company.
A launch, Paytm-ICICI Bank Postpaid will offer the credit limit to select customers of the bank using the Paytm app. It will be available to non-ICICI Bank customers using the Paytm app soon.
Commenting on the launch 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. We are delighted to launch Paytm-ICICI Bank Postpaid, our first offering in this space in association with Paytm.
Vijay Shekhar Sharma, Founder & CEO – Paytm said:
It’s common for us to ask a trusted friend for money for frequent expenses and promise to pay later. These exchanges are based on trust that you will pay back as soon as you have access to money. We believe our customers are sincere with their payments and Paytm Postpaid will play a major role in helping them pay for their daily expenses on time. This will democratize access to credit including those with less disposable income. We are happy to launch credit in a digital way to the masses in the form of Paytm Postpaid with ICICI Bank as our first partner.