Buy now Pay later : Post Paid Mini by Paytm
The most successful mobile payment platform Paytm has announced the launch of postpaid Mini, an extension of its Buy Now Pay Later services driving affordability to those new to credit. These small instant loans will give flexibility to users and also serve to handle their household expenses during the unprecedented pandemic. This has been set up with the partnership with Aditya Birla Finance Ltd.
By introducing Postpaid Mini, the company will provide access to loans starting from Rs 250 to Rs 1000, in addition to Paytm Postpaid’s quick credit of up to Rs 60,000. This is very useful for the consumers to pay for their monthly expenses, like mobile and direct to home (DTH) recharges, electricity, gas cylinder booking, and water bills, shop on Paytm Mall, and more.
With the help of Paytm Postpaid, its existing offering, consumers are able to pay at online and offline merchant stores across the country. The service is being accepted now at many petrol stations, neighborhood Kirana stores or medical shops, popular chain outlets (such as Apollo Pharmacy, Reliance Fresh, etc), internet apps (like Firstcry, Dominos, Myntra, Uber, Ajio, Pharmeasy, and many more) and popular retail destinations (such as Shoppers Stop, Croma, etc) among others. This service is accessible in over 550 cities in India.
Bhavesh Gupta CEO, Paytm Lending, told TOI that the company is now able to extend the market for institutional credit as it would be available to those who have otherwise not availed of such finance
He said that the company was now able to expand credit as it has a view of their customer across platforms in online and offline payments and payments as a merchant. “This gives us an edge over others foraying into ‘buy now, pay later’ products and we can activate a large number of customers and allow them to use the product across a large number of merchants,” he said
He said in a statement: “We want to help new-to-credit citizens start their credit journey and develop 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.”
With such a service, Paytm Postpaid is providing a time of up to 30 days for repayment of loans. They do not charge any interest for this service. No annual fees or activation charges are charged, only a minimal convenience fee.
Looking forward to its initial public offering Paytm is trying to capture as much of the financial services market as possible.
The company is on plan to raise $3 billion (around Rs 22,000 crore) through its IPO. In May, the IPO plan gained in principle approval from Paytm’s Board. If the plan hits success, this will be the highest IPO (initial public offering) by an Indian company. This will break Coal India’s 2010 record of Rs 15,475 crore.
