MICROCAPITAL BRIEF: Paytm of India Expands Retailer Network Accepting Digital Payments, Quintuples Consumer Credit Limit in Response to COVID-19 Pandemic

Paytm, an Indian digital payment firm, recently expanded the network of locations that participates in its payment system, which is based on purchasers scanning QR codes with their mobile phones, as well as its service Postpaid, which allows users to delay paying for these purchases by one month. Paytm’s expansion focused on neighborhood shops known as kiranas, which sell groceries and home essentials, and other in-person retailers that sell similar goods. Among the retail chains in this category are Apollo Pharmacy, Croma, Haldiram, Reliance Fresh and Shoppers Stop. Paytm also signed on restaurants and retailers such as Domino’s, HungerBox, Pepperfry, Patanjali, Spencer’s and Tata Sky. Meanwhile, Paytm is increasing the monthly credit limit for its Postpaid service from INR 20,000 (USD 265) to INR 100,000 (USD 1,310).

Part of the motivation for these changes is to mitigate the impacts of COVID-19 by reducing: (1) the potential spread of disease from handling cash and payment cards; and (2) the financial strain on households by increasing their ability to borrow.

Paytm, whose name derives from the phrase “pay through mobile,” has partnered with 7 million merchants across India. Its shareholders include Ant Financial, Alibaba, SAIF Partners and Softbank. Financial details on the firm remain confidential.

By Andrew Janni, Research Associate

Sources and Additional Resources

Livemint piece on Paytm Postpaid
https://www.livemint.com/money/personal-finance/paytm-s-spend-now-pay-next-month-option-available-at-local-kirana-stores-how-to-use-11591702635028.html

Paytm homepage
https://paytm.com/

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