Just days after Axis Bank launched a co-branded credit card with VISA and Google Pay to advance the use of digital payments in India, the country’s largest online financial services platform, Paytm, has announced that it is building ‘Next Generation Credit Cards’ that can be controlled by the company’s mobile app. In an official press release, the company claimed that the new product will democratize the access to a formal credit system for people who are not served by existing services.
To do that, the company is introducing a new feature on its app, allowing users to manage their overall spends and have full control over the card usage. Towards that end, Paytm says that it plans to tie-up with various card issuers to introduce co-branded cards in the coming days. The company is also aiming to issue two million cards in the next 12-18 months.
The proposed Paytm cards will reportedly be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card and viewing outstanding credit-limit. It will also have security safeguards, like using the app to switch off contactless payments, which will help prevent fraud in case it is lost or misplaced.
The entire process – from application to issuance – will happen via the Paytm app, and customers will have the flexibility of choosing a convenient time for the collection of documents. The company claims that the process will reduce the rate of rejections and enable more people to participate in the formal credit system.
Announcing the launch, Bhavesh Gupta, CEO – Paytm Lending 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. This can transform the credit market by bringing ‘new to credit’ users into the formal economy”.