Paytm plans pan-India expansion of online lending business

Representative picture

New Delhi: Digital wallet company Paytm plans to expand the footprint of its online lending business across India later this year as it seeks to make lending its main source of income, the Economic period said in a report.

Last July, the company launched a pilot project in partnership with Clix Capital to offer deferred payment mode loans to consumers and line of credit merchants.

Paytm senior vice president Saurabh Sharma told the business daily that so far it was a pilot project, which provided an internal case study. Now the goal is to scale it.

Paytm has now partnered with more non-bank lenders to help expand its online footprint faster. “We are playing around with some additional ideas for the lending business,” Sharma told the publication.

However, to start lending, Paytm, owned by One97, needs a Non-Banking Financial Company (NBFC) license. Sharma said his company is looking into the possibilities of getting an NBFC license. Paytm Payments Bank is not authorized to lend as per Reserve Bank of India guidelines. As payment bank, Paytm and India Post have already sought RBI’s approval to start lending.

“The challenge today is to become a privileged partner for consumers. All of our innovations are centered around this goal,” the publication quoted Sharma as saying.

Paytm’s user base has grown to 15 crore so far, including 1.5 crore merchants.

It recently launched an all-in-one QR for merchants nationwide to accept unlimited payments via Paytm Wallet, Rupay Cards and all UPI-based payment apps directly to their bank account with no fees.

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