Paytm To Partner Banks, NBFCs For Enhancing Higher Ticket Loans For Merchants, Consumers

Fintech giant, Paytm expands credit distribution business to enhance focus on higher ticket loans for consumers and merchants in partnership with banks and NBFCs. One97 Communications which owns the brand Paytm on Tuesday shared an update and outlook on its loan distribution business.

As per the update, Paytm announced that it will further expand its business to offer higher ticket personal and merchant loans, which would be targeted at lower risk and high credit-worthy customers, in partnership with large banks and NBFCs.

Also, on the backdrop of strong portfolio performance and widespread acceptance of loan distribution, Paytm started in this direction last quarter and is seeing encouraging early trends.

Paytm Spokesperson said, "As the lending distribution business is maturing, we see newer opportunities of expansion to offer high-value personal and merchant loans. We will continue to focus on originating the high portfolio quality for our lending partners, along with strict adherence to risk and compliance."

The spokesperson added, "We have seen great scale and acceptance for our loan distribution business, so we believe this expansion will further aid us to grow the business."

Furthermore, on the back of recent macro development and regulatory guidance, in consultation with lending partners, in line with its continued focus on driving a healthy portfolio, the company has recalibrated the portfolio origination of less than Rs 50,000, which is prominently the postpaid loan product and will now be a smaller part of its loan distribution business going forward.

Merchant loans, which are given to MSMEs as business loans, will continue to be a focus for Paytm. As these loans are given for business purposes to small merchants, they don't get impacted by the recent regulatory guidance, it said.

The fintech continues to add banks and NBFCs as its lending partners for its loan distribution business.

Paytm is India's leading mobile payments and financial services distribution company. Pioneer of the mobile QR payments revolution in India, Paytm builds technologies that help small businesses with payments and commerce.