Paytm announces the launch of a Postpaid Mini small note lending product
The digital payments and financial services platform Paytm on Monday announced the launch of Postpaid Mini, small loans that will give users the ability to access loans ranging from Rs 250 to Rs 1,000, in partnership with Aditya Birla Finance Ltd.
The product is an extension of its Buy Now, Pay Later service, offering an affordable price to new creditors. These small instant loans will give users flexibility and will also help manage their household expenses to maintain cash flow during the ongoing coronavirus (Covid-19) pandemic.
With this service, Paytm Postpaid offers a period of up to 30 days for the repayment of loans at 0% interest. There is no annual fee or activation fee, only a minimal convenience fee.
Bhavesh Gupta, CEO of Paytm Lending, said, “We want to help new citizen creditors start their credit journey and develop financial discipline. Through Postpaid, we are also making sincere efforts to help boost consumption in the economy. Our new Postpaid Mini service helps users manage their cash flow by clearing their bills or payments on time. “
With the launch of Postpaid Mini, the company will offer access to loans ranging from Rs 250 to Rs 1000, in addition to Paytm Postpaid instant credit of up to Rs 60,000. This could help users pay their monthly expenses, including mobile and direct-to-home (DTH) top-ups, gas cylinder reservations, electricity and water bills, Paytm Mall purchases and more.
Thanks to Paytm Postpaid, its existing offering, users can pay in online and offline merchant stores across the country. Paytm Postpaid is currently accepted in thousands of gas pumps, neighborhood kirana stores or pharmacies, popular chain stores (such as Reliance Fresh, Apollo Pharmacy, etc.), internet apps (such as Myntra, Firstcry , Uber, Dominos, Ajio, Pharmeasy, etc.) and popular retail destinations (such as Shoppers Stop, Croma, etc.) among others. Paytm Postpaid is available in over 550 cities in India.
Prior to its initial public offering, Paytm seeks to capture as much of the financial services market as possible.
The company plans to raise $ 3 billion (around Rs 22,000 crore) from its IPO. The IPO plan received approval in principle from Paytm’s board of directors in May. If successful, it could be the largest Initial Public Offering (IPO) of an Indian company, breaking Coal India’s 2010 record of Rs 15,475 crore.
Paytm is also aiming for a valuation of $ 25 to $ 30 billion, which is 1.5 to 1.8 times the current valuation of $ 16 billion.
A recent report from Bernstein Research indicates that Paytm is not just a provider of financial applications, but a group of synergistic fintech platforms. He added that Paytm’s activities such as PFG are also “free customer acquisition and monetization opportunities.”