Kirana stores , Autowallas can avail low-interest loans through Paytm

Paytm, India’s mobile payment and commerce platform is now facilitating collateral-free working capital loans for O2O merchants on its platform.

Small merchants including Kirana stores, chemists and autowallas, who have established a history of accepting consumer payments through Paytm will benefit from easy access to funding at rates substantially lower than their current alternatives. Paytm has partnered with financial institutions, which will offer loans to merchants based on their payments history at Paytm. This will make it easier for small merchants across the country to access formal credit channels. After a merchant consents, Paytm’s partners will use the payment acceptance history to offer loans to eligible merchants.

At the launch, Kiran Vasireddy, Sr. Vice President – Paytm said, “Financial inclusion is our main agenda. Availability of unsecured loans at low interest rates has been a challenge for small merchants till now, forcing them to borrow through high-cost methods like chit funds. By accepting payments through Paytm consistently, merchants can now get a digital footprint at zero cost, courtesy which they will get access to low-interest loans. We truly believe that such easy and low-cost funding will give merchants much-needed support to take their business to new heights. Further, availability of credit will also encourage merchants to move towards more digital transactions and a less-cash ecosystem”

Paytm’s rapidly growing offline payment network gives small merchants instant settlement at zero cost and is targeted to cover over 1 mn outlets by December 2016. They are targeting four mn merchants by the end of next year, which will include Kirana stores, Autowallas, Taxi drivers, Milk Cooperatives and many more.

The company has recently entered into strategic alliances with leading retail chains wherein users can now pay with Paytm at Spencer’s Retail, More, WH Smith, Kendriya Bhandar, Heritage Fresh, V2 Retail, Vivek’s Store, Value Plus & various other large retail stores. In addition to these leading retail chains, Paytm is already accepted at Quick Service Restaurants including KFC, Pizza Hut, Cafe Coffee Day, Costa Coffee, Barista and Vaango.