One 97 Communications, the parent company of Paytm, has launched Paytm Postpaid, a credit line on UPI, in partnership with Suryoday Small Finance Bank (SSFB). This service allows consumers to “spend now and pay next month” with up to 30 days of interest-free credit. The facility can be used to make payments across any merchant UPI QR code, online shopping platform, or within the Paytm app itself for services such as recharges, bill payments, and bookings.
The service is initially being rolled out to a select set of users, identified on the basis of their spending behavior, and will be expanded further in the coming months. The initiative is powered by the National Payments Corporation of India (NPCI) and leverages Paytm’s existing UPI payment infrastructure. According to Avijit Jain, Chief Operating Officer – Lending at Paytm, the new feature is designed to give families and individuals additional flexibility in managing household and personal expenses.
To use the service, consumers need to activate the facility by completing KYC verification and linking their UPI account through the Paytm app. The process requires authentication with Aadhaar and setting up a UPI PIN to enable payments using the linked credit line. The launch of Paytm Postpaid comes at a time when UPI continues to expand as India’s most widely used digital payment system. By introducing a short-term credit facility directly linked to UPI, Paytm and Suryoday Small Finance Bank are looking to bridge the gap between digital payments and consumer credit.
Both Paytm and Suryoday Small Finance Bank have highlighted that the offering is backed by regulated banking infrastructure to ensure compliance and security. Vishal Singh, Chief Information Officer and Head of Digital Banking at Suryoday Small Finance Bank, noted that the collaboration reflects the bank’s commitment to expanding access to responsible credit. The service aims to provide consumers with short-term liquidity without disrupting daily expenses, while merchants benefit from universal UPI acceptance and assured instant settlements. With the launch of Paytm Postpaid, Paytm and Suryoday Small Finance Bank are poised to revolutionize the digital payment landscape in India.