Paytm has relaunched its BNPL (Buy-Now-Pay-Later) service under the name Paytm Postpaid on UPI, in partnership with Suryoday Small Finance Bank. This comes more than a year after it had paused its earlier Postpaid/BNPL product.
Key Features of the Relaunched Service
| Feature | Details |
|---|---|
| Credit Limit | Up to ₹60,000 per user. |
| Repayment Term | Interest-free, 30-day repayment period. Billed monthly. |
| Where It Works | Can be used for UPI payments at merchant outlets, any UPI QR code, online shopping, mobile recharges, bill payments via Paytm app, etc. |
| Activation | Instant activation from within the Paytm app. Less paperwork. |
Why It Matters
- This relaunch signals Paytm’s push to regain traction in consumer credit / short-term financing, after regulatory headwinds made BNPL risky.
- Using UPI as the channel helps integrate the service into everyday payments, making it more seamless for users who do a lot of UPI-based transactions.
- A ₹60,000 limit is higher than some earlier BNPL offers, making this more competitive with credit cards or other credit lines.
Potential Challenges & What to Watch
- Regulatory risk remains high, since unsecured lending and consumer credit are under scrutiny from the RBI. Business Today
- Risk of over-indebtedness for users if many make frequent use without attention to repayment.
- Paytm will need strong risk management (KYC, credit checks) to avoid defaults.
- The acceptance of Postpaid on UPI by merchants and price sensitivity will determine how fast users adopt it.
