Mobile wallet brand Paytm has collaborated with private lender ICICI Bank to function like virtual credit card and assist the bank to assess credit profile of the customers with low credit history.
Customers shopping through Paytm can opt to pay later making use of the credit line offered by ICICI Bank. The product is limited to the users who an account with ICICI Bank.
The credit limit has been set at Rs20,000 and the amount borrowed needs to be repaid within 45 days. “Beyond 45 days, the amount borrowed will attract a charge of 3 per cent, similar to our credit card offerings,” said Anup Bagchi, Executive Director at ICICI Bank.
Information about the number of customers, immediately eligible for the credit product is not available.
“Paytm-ICICI Bank Postpaid will enable more people to use Paytm more often for their daily needs. It will also lead to near 100% transaction success rate as the payment flow will remain on Paytm,” said Paytm’s spokesperson.
“Both the upside and downside will be on our books. The success will depend on quality of credit we underwrite,” said Bagchi.
This will provide Paytm users an easy option of transacting. ICICI Bank will make use of the data to build credit history of the customers, with low or no credit history.
