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Paytm plans to scale up its online lending business, Retail News, ET Retail

KOLKATA: Digital payments player Paytm is planning to take its online lending business across the country later this year as it looks to make it a major income stream. Last year in July, Paytm partnered with Clix Capital to offer loans as a deferred payment option for consumers and to merchants as credit lines.

Paytm’s senior vice president Saurabh Sharma told ET that so far it has been a pilot run which has provided inside case study. Now, the aim is to scale it up.

The online platform, owned by One97 Communications Ltd, has tied up with more non-bank lenders, towards this goal. “We are toying with a few more ideas for the lending business,” he said. Giving a lead to the lender is one of them.

The platform has 15 crore users including 1.5 crore merchants. It has become a trend for fintech firms to trying to get into the lending business which is more remunerating. But providing a loan on balance sheet requires a non-banking finance company license.

Sharma said his company is examining the possibilities of getting an NBFC license. Paytm Payments Bank is not allowed to lend as per Reserve Bank of India’s guidelines.

“The challenge today is to become a preferred partner to consumers. All our innovations and centred around this goal,” Sharma said. It has recently launched All-in-One QR for merchants across the country to accept unlimited payments through Paytm Wallet, Rupay Cards and all UPI based payment apps directly into their bank account free of cost.

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