Fintech giant and payment gateway company, Paytm, has launched a new service on its platform called the ‘Postpaid Mini’ which is a part of its ‘Buy Now Pay Later (BNPL)’ services. This feature will offer small-ticket instant loans that will help users manage their monthly household expenses. This service has been launched in partnership with the Non-Banking Financial Company (NBFC), Aditya Birla Finance Ltd. This is in addition to the existing services of ‘Paytm Postpaid’, which offers individuals instant credit.
With this launch, the company can offer clients access to small loans that range from Rs 250 to Rs 1,000, which will help users gain some amount of flexibility in this pandemic-stricken time. It aids in day-to-day expenses and can be utilised for various purposes such as mobile & DTH recharges, gas cylinder booking, electricity & water bill payment as well as other monthly expenditures that one might have. When considering that this feature operates on top of the existing Paytm Postpaid service, that is an additional Rs 60,000 in credit from the Postpaid avenue.
The benefits of this newly added feature are that it offers clients a 30-day repayment window with a 0 per cent rate of interest on the loans. Additionally, there are no activation charges or annual fees, other than a minimal convenience fee that is levied.
Since Paytm is an established brand across the nation and has its Paytm Postpaid services present across 550 cities in India, the benefits fall to the user in terms of versatility. Users can pay their bills online or offline at their convenience. This convenience is present across petrol pumps, kirana stores, pharmacies, popular chain outlets such Reliance Fresh and Apollo Pharmacy, internet apps such as Myntra, Firstcry, Uber, Dominos, Ajio and Pharmeasy as well as in other popular retail destinations such as Shoppers Stop and Croma, according to a press release by Paytm.
Big Moves, Big Money, Bigger Payoff
In the press release, Bhavesh Gupta, the CEO of Paytm Lending said, “We want to help new-to-credit citizens start their credit journey and develop a financial discipline. Through Postpaid we are also making sincere attempts to help drive consumption in the economy. Our new Postpaid Mini service helps users manage their liquidity by clearing their bills or payments on time."
Paytm’s Postpaid service is readily driving the company’s growth by providing a new level of affordability and accessibility to clients. The service has over 10 million users on the platform as the company is bullish on its growth.
All these new changes come amidst a time when all eyes are on the fintech titan as it moves towards its historical initial public offering (IPO) worth $2.3 billion that is set to hit the market floor by the end of the year, possibly in November. Upon registration, the company will be doing so with an approximate valuation of $25 to $35 billion. This is a massive leap from where the company previously stood after its 2019 funding round, where it raised $1 billion in funds from Softbank and Ant Financials. This had brought the valuation up to $16 billion.