Digital payment service provider Paytm has partnered with ICICI Bank to provide short-term credit facility for up to Rs.20,000 over a period of 45 days. The digital credit plan titled ‘Paytm-ICICI Bank Postpaid’ is the first of its kind in the Indian market. This facility ensures that customers have access to instant credit facility without depending on any other sources.
As of now, the service will be available only for ICICI Bank customers who use Paytm wallet. However, there are plans underway to extend the service to non-ICICI customers too. This credit facility can be used for any digital transactions ranging from movie ticket booking to utility bill payment. The amount of credit available for each customer may vary, and it would largely depend on the cumulative credit score of the customer.
Customers who make digital transactions will now see an option called ‘pay later’. By clicking this button, they can choose the option to use the credit facility available to them. The credit score of a customer will be calculated instantly based on his or her digital behavior, purchase patterns, credit bureau score, payment history, etc. Based on all these factors, the credit available for a customer ranges from Rs.3,000 to Rs.20,000.
The service is interest free for up to 45 days. Paytm has announced that there will be no hidden fees related to transaction costs or joining costs. If the credit bill is not settled within 45 days, an interest charge of 3% will be levied per month till the payment is settled by the customer.
According to Paytm Founder & CEO Vijay Shekar Sharma, these exchanges are based on trust that customers will pay back the money as soon as they have access to the money. He also added that Paytm postpaid will play a major role in helping customers with their credit and this service will be available even for people with less disposable income.
Paytm is also said to be open for ties with other digital payment service providers and banks to increase the availability of this service.
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