Paytm’s lending business (merchant loans) as well as Paytm Postpaid, the company’s buy-it-now and pay-out product, has got off to a good start. The company’s DRHP reveals that it disbursed 1.4 million loans to T4FY21, nearly 100 times the number of loans (13,000) disbursed to T3FY21.
The company in its DRHP said its users can take advantage of a transaction credit facility for a wide range of products and services in more than 0.5 million stores, apps and websites. The Paytm Postpaid service has a credit limit of up to 60,000 for a maximum of 30 days, offered in partnership with two large non-bank financial companies in India with instant credit limit for various payments to Paytm app users .
The Postpaid feature helps users break down their EMI expenses without worrying about squeezing their monthly budgets.
Paytm’s Buy Now, Pay Later feature helps users meet their daily payment needs, including bill payments and commerce. “Users can use Paytm Postpaid at a wide range of retail locations in India, from daily groceries, milk and other home essentials purchases in neighborhood stores to high value purchases in destinations across India. popular retail, ”the company said in its DRHP.
The company also mentioned vertical lending as one of its main areas of intervention in its DRHP. The company said, “The key strategic goal for us is to grow our consumer and merchant lending businesses, including Paytm Postpaid (buy now-pay later), together with our financial partners, as well as our wealth management offers “.
This follows analysts who expect credit technology to lead Paytm’s next phase of growth. “We expect Paytm’s revenue base to double by FY 23 to $ 1 billion, with non-payment revenue contributing 33%, led by credit technology,” said a Bernstein Analysis report.
For Paytm, BNPL’s promise is high as it will be able to leverage its current base of 300 million users. “Paytm Credit Tech has started making great strides in creating a revolving credit product (a one month credit limit) on its app, which users can spend within its ecosystem and across the universe. UPI, ”the Bernstein report said.
Recently, the company also launched an extension of its Buy Now product, Pay Later with Paytm Postpaid Mini, which allows loans as low as 250 for users.