paytm: Paytm plans to expand its online lending business

KOLKATA: Digital payments player Paytm plans to expand its online lending business across the country later this year as it seeks to make it a major source of income. Last year in July, Paytm partnered with Clix Capital to offer loans as a deferred payment option to consumers and merchants in the form of lines of credit.

Paytm senior vice president Saurabh Sharma told ET that so far this has been a pilot project that has provided an internal case study. Now the goal is to enlarge it.

The online platform, owned by One97 Communications Ltd, has partnered with more non-bank lenders for this purpose. “We are playing with a few more ideas for the lending industry,” he said. Giving an advance to the lender is one of them.

The platform has 15 crore of users, of which 1.5 crore are merchants. It’s become a trend for fintech companies to try to get into the lending business, which is more rewarding. But providing a loan on the balance sheet requires a license from a non-bank finance company.

Sharma said her company is looking into options for obtaining an NBFC license. Paytm Payments Bank is not authorized to lend in accordance with the guidelines of the Reserve Bank of India.

“The challenge today is to become a privileged partner of consumers. All of our innovations are centered around this objective,” said Sharma. It recently launched All-in-One QR for merchants across the country to accept unlimited payments through Paytm Wallet, Rupay Cards, and all UPI-based payment apps directly to their bank account at no charge.

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