Paytm to disburse Rs 1000 crores to MSMEs by 2021

Paytm reiterated its commitment to the growth of the MSME sector through its app serving the store owners and helping them manage their business.

Paytm has provided more than 17 million merchant partners across the country with Paytm ‘All-in-One QR’ to enable them to accept payments via Paytm wallet, bank accounts (both proprietary and third party), UPI and Rupay Cards directly into their bank accounts at a rate of zero %.

The company reaffirmed its commitment to the growth of small and medium-sized enterprises (MSME) by extending collateral-free loans of up to Rs. 5,00,000 at a low-interest rate and a unique daily EMI product customised for micro-marketers.

Paytm continues to lead the offline payments (P2M) segment with more than 50 % market share by offering all digital payment methods. It has recently launched Paytm All-in-One Android POS device enabling over 2 lakh MSMEs to accept all payment modes, including Paytm Wallet, all UPI-based apps, Debit & Credit Cards, and most notably, ‘Cash.’

The ‘Paytm for Business’ app has also become a growth enabler for Kirana stores, helping them track payments instantly, navigate past collections, and track payments made to their preferred bank accounts. This app is available in 10 regional languages and is used efficiently by retailers in small towns and cities.

Paytm continues to provide collateral-free loans under the ‘Merchant Lending Program’ in the Paytm for Business app. Its algorithm determines the creditworthiness of the merchant based on day-to-day transactions and arrives at a pre-qualified loan offering. Paytm in association with NBFCs and Banks has digitised the entire process, starting from the application for a loan, with no requirement of additional documents.

Loan repayment is mainly collected from the merchant’s daily settlement, and there are no prepayment charges for these loans. In the last financial year, Paytm processed loans worth Rs 550 crores from more than a lakh merchant partner.

Bhavesh Gupta, CEO Paytm lending stated with a collateral-free instant loan, the company is working to help Kirana stores and other small business owners who have been left behind by the conventional banking sector and who do not have easy access to loans and credit. In the future, we will focus in particular on EDC traders and provide higher loan amounts based on their EDC transactions.

Paytm is committed to providing instant credit to those who do not have access to loans from the traditional banking sector due to a lack of collateral or credit score. Recently, the company launched ‘Next Generation Credit Cards’ and ‘New to Credit’ (NTC) customers.

Paytm’s instant credit facility is a fully digital experience – from applying to tracking status and finally receiving credit.