Paytm has recently introduced a new feature called "Paytm Postpaid" that allows users to access a credit line on UPI (Unified Payments Interface) for everyday payments. This service, launched in partnership with Suryodaya Small Finance Bank (SSFB) and powered by NPCI, offers a "spend now, pay later" option, providing users with short-term credit for their daily transactions.

How Paytm's Credit Line on UPI Works

Paytm Postpaid offers users a credit line that can be used for various types of payments through the Paytm app. This includes:

• UPI QR Code Payments: Scanning any UPI QR code at merchant locations.
• Online Shopping: Making payments on online shopping platforms.
• Recharges and Bill Payments: Paying for mobile recharges, utility bills, and other services within the Paytm app.
• Bookings: Paying for travel or movie bookings through Paytm.

The credit line provides users with up to 30 days to repay the amount spent, potentially without any interest charges. This offers a convenient way to manage expenses and liquidity, especially during times when immediate funds may not be available.

How to Activate and Use Paytm Postpaid

To use the Paytm Postpaid service, users need to activate it through the Paytm app:

1. Open Paytm App: Tap on the "Paytm Postpaid" icon on the home screen.
2. Create Credit Line: Fill in the required details, complete the KYC (Know Your Customer) verification process, and set up a mandate.
3. Link UPI Account: Link your UPI account to the credit line.
4. Choose Bank & Authenticate: Select Suryodaya Small Finance Bank and authenticate using Aadhaar.
5. Set UPI PIN: Create a UPI PIN to secure transactions made through the credit facility.

Once the activation process is complete, users can start making payments using the credit line on UPI. The amount spent is billed on the 1st of every month.

Benefits of Using Credit Line on UPI

• Instant Access to Funds: Make payments even without sufficient funds in the bank account.
• Seamless UPI Experience: Integrated smoothly into the existing UPI platform.
• Wide Acceptance: Usable at numerous offline merchants and online platforms accepting UPI.
• Flexibility: Offers a short-term credit period of up to 30 days for repayments.
• Build Credit Profile: Timely repayments can help improve credit scores.

Availability

The Paytm Postpaid service is being rolled out in phases, initially to a select group of users based on their spending patterns. Paytm plans to expand the service to more users in the near future.