NEW DELHI: Digital payments major Paytm has announced its tie-up with ICICI Bank to jointly launch ‘Paytm-ICICI Bank Postpaid’, the most seamless way to access interest-free short-term digital credit.
Under the new offering, millions of Paytm customers will get access to instant credit for the first time for everyday use-cases, ranging from movies to bill payments to flights to physical goods.
Paytm-ICICI Bank Postpaid is a digital credit account with instant activation: with no hassles of documentation or branch visit, while activation is fully online. There is no transaction, joining or hidden administration fees.
Available 24x7 and on all days, it is based on a new Big Data based algorithm by ICICI Bank for real-time credit assessment of customers.
The algorithm uses an intelligent combination of financial and digital behaviour of the customer including credit bureau check, purchase patterns, frequency of purchase to ascertain the credit – worthiness of a customer within a few seconds. Based on the credit-score of the customer, the bank offers upto 45 days interest-free credit limit.
It ranges from Rs. 3,000 to Rs 10,000, extendable upto Rs. 20,000 based on the repayment history. Paytm-ICICI Bank Postpaid will also offer a quick checkout to customers with the Paytm Passcode.
As a start, Paytm-ICICI Bank Postpaid will offer the credit limit to select customers of the bank using the Paytm app. It will shortly be available to non-ICICI Bank customers using the Paytm app.
Once the credit limit is set up for a customer, a consolidated bill is generated on the first day of the next month, which has to be paid by the 15th day of the same month. Customers can use their Paytm Wallet, debit card or internet banking of any bank for an easy repayment of their dues.
“In this endeavour, we have leveraged upon Big Data to develop a new algorithm that instantly assesses the credit worthiness of customers using a combination of financial and digital parameters to sanction the credit line instantly,” said Anup Bagchi, Executive Director, ICICI Bank.
“We believe our customers are sincere with their payments and Paytm Postpaid will play a major role in helping them pay for their daily expenses on time. This will democratise access to credit including those with less disposable income,” said founder and CEO – Paytm, Vijay Shekhar Sharma.