Paytm, a digital wallet app, and ICICI Bank, a private sector bank, have collaborated to announce an all-new initiative where users can get interest-free short-term digital credit. Called Paytm-ICICI Bank Postpaid, the new offer will let Paytm customers get instant credit for various use-cases like paying for movie tickets, bill payments, flights, as well as physical goods.
As per the new Paytm-ICICI Bank Postpaid offer, customers can get digital credit account with instant activation without documentation or branch visit, and the activation will be online. Customers will be offered digital credit based on their credit-score and can be offered up to 45 days interest-free credit limit. The credit limit will range from Rs. 3,000 to Rs. 10,000 and will be extendable up to Rs. 20,000 based on the repayment history of the customer. Paytm-ICICI Bank Postpaid will have a quick checkout option for customers with the Paytm Passcode.
Paytm-ICICI Bank Postpaid will be offered to select ICICI customers via the Paytm app. It will shortly be available to non-ICICI Bank customers using the Paytm app.
Once the credit limit has been set for a customer, a consolidated bill will be generated on the first day of next month, which has to be paid within 15 days in the same month. Customers will have the option to use Paytm Wallet, debit card, or Internet banking of any bank to repay their dues.
Explaining how credit score is determined, ICICI Bank explains, "it is based on a new big data based algorithm by ICICI Bank for real-time credit assessment of customers. The algorithm uses an intelligent combination of financial and digital behaviour of the customer including credit bureau check, purchase patterns, frequency of purchase to ascertain the credit - worthiness of a customer within a few seconds."
Announcing the new offer, Anup Bagchi, Executive Director, ICICI Bank said, "We are delighted to launch Paytm-ICICI Bank Postpaid, our first offering in this space in association with Paytm."
Vijay Shekhar Sharma, Founder and CEO Paytm said, "We believe our customers are sincere with their payments and Paytm Postpaid will play a major role in helping them pay for their daily expenses on time. We are happy to launch credit in a digital way to the masses in the form of Paytm Postpaid with ICICI Bank as our first partner."
Disclosure: Paytm's parent company One97 is an investor in Gadgets 360.