Paytm to soon introduce next-generation credit cards that can be controlled through an app

Paytm has announced that it is building the country's 'Next Generation Credit Cards' designed to democratise the access to a formal credit system for the masses. The company says that it aims to transform the credit market by enabling 'new to credit' users to join the digital economy. Paytm is also designing a digital experience on its app allowing users to manage their overall spends and have full control over card usage.

The company will be partnering with various card issuers to introduce co-branded cards and is hoping to issue two million cards in the next 12-18 months. With this service, Paytm aims to give complete control to cardholders to manage their transactions in real-time. It will be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card and viewing outstanding credit-limit. It will also have options to safeguard users against fraud by switching off the card for contactless payments or international transactions when not required.

Paytm's credit card will provide insurance protection against fraudulent transactions to protect users money. This service will also come with a personalized spend analyzer helping in assessing expenses and planning future spends smartly. There would be no need to visit the bank branch or call customer support.

Bhavesh Gupta, CEO - Paytm Lending said: "In our country, credit cards are still considered a product for the affluent sections of the society and not everyone can avail of its benefits. At Paytm, our aim is to provide credit cards that benefit India’s aspiring youth and evolved professionals. These cards are designed to help them lead a healthier financial life through managing and analysing the spends to make well-informed decisions. This can transform the credit market by bringing 'new to credit' users into the formal economy."