Indian digital payments firm Paytm has expanded its postpaid lending services, its consumer lending product.
The expansion will enable users to purchase regular groceries from local merchants as well as shop at popular retail destinations.
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The step is expected to encourage digital transactions and reduce use of cash for meeting monthly household expenses.
In a blog post, Paytm said: “Our service can now be availed to buy groceries, milk, and other home essentials from neighbourhood Kirana stores and also at popular retail destinations such as Reliance Fresh, Haldiram, Apollo Pharmacy, Croma, Shoppers Stop among others.”
The payments firm offers the postpaid service in partnership with two NBFCs. The service provides instant credit to the users for making purchases.
Paytm has also introduced three variants of the service with varying credit limit.
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By GlobalDataThe Postpaid Lite offers credit limit of up to INR20,000 with a convenience charge to be added on the bill.
The other two variants, the Delite and Elite, offer credit limits from INR20,000 to INR100,000 monthly with no convenience charges.
Users, who have completed their online KYC with Paytm’s partner NBFC, can avail the postpaid service. They will also get access to passbooks to assess monthly expenditure.
Bills can be repaid by the 7th of each month.
In April, it was reported that American technology giant Microsoft is in talks to invest in Paytm.
