One97 Communications (Paytm) is planning to further expand its credit distribution business to offer higher ticket personal and merchant loans, which would be targeted at lower risk and high credit worthy customers, in partnership with large banks and NBFCs. Given the strong portfolio performance and widespread acceptance of loan distribution, the company had started in this direction last quarter and is seeing encouraging early trends.
On the back of recent macro development and regulatory guidance, in consultation with lending partners, in line with its continued focus on driving a healthy portfolio, the company has recalibrated the portfolio origination of less than Rs 50,000, which is prominently the postpaid loan product and will now be a smaller part of its loan distribution business going forward. Merchant loans, which are given to MSME as business loans, will continue to be a focus for Paytm.
Paytm is India's leading digital ecosystem for consumers as well as merchants.
