Paytm shifts focus to higher ticket loans in partnership with banks and NBFCs


Paytm, operated by One97 Communications Limited (OCL), a leader in mobile payments and financial services in India, has announced a significant shift in its loan distribution business. The company is now expanding its services to offer higher ticket personal and merchant loans, targeting low-risk and high creditworthy customers. This move, in partnership with large banks and Non-Banking Financial Companies (NBFCs), marks a new chapter in Paytm’s credit distribution journey.

Targeting High-Value Loan Segments

Acknowledging the robust performance and acceptance of its loan distribution services, Paytm has recently initiated this strategic shift. The company’s focus on higher-value loans aligns with recent macroeconomic developments and regulatory guidelines. Consequently, Paytm is recalibrating its portfolio to reduce the distribution of loans under ₹50,000, primarily in the postpaid loan segment, and will now emphasize higher ticket loan distribution.

Paytm Enhances Loan Offerings, Targets High-Value Personal and Merchant Loans

Paytm Enhances Loan Offerings, Targets High-Value Personal and Merchant Loans

Regulatory Shifts and Paytm’s Strategic Response

Paytm’s decision to adjust its loan distribution strategy is a response to recent regulatory guidance and market trends. This recalibration aims to drive a healthier portfolio for its lending partners. Merchant loans, particularly for MSMEs, will remain a focal point, as these business loans are not impacted by the latest regulatory changes.

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Future Prospects for Paytm’s Loan Distribution Business

A Paytm spokesperson highlighted the maturation of the lending distribution business and the emergence of new opportunities to offer high-value personal and merchant loans. With a commitment to high portfolio quality, risk management, and compliance, Paytm envisions this expansion as a vital step in growing its business. The addition of new banks and NBFCs as lending partners further solidifies Paytm’s position in the loan distribution market.

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As Paytm navigates the dynamic fintech landscape, its shift towards higher ticket loans represents a strategic adaptation to changing market conditions and regulatory environments, positioning the company for continued growth and success in the financial services sector.

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