Paytm temporarily halts Postpaid operations as NBFC partners get wary
Paytm has temporarily halted its buy-now-pay-later (BNPL) service Postpaid for its users, as lending partners have become cautious about fintech partnerships after the Reserve Bank of India raised risk weightages by 25% against unsecured lending.
According to sources, in Paytm’s case, Aditya Birla Capital, a major partner, seems to have pulled out of the Postpaid partnership, leading to the company temporarily halting the service for users.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Senior Management ProgrammeVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Product ManagementVisitIt has also halted new-sign-ins for users on the Postpaid service.
ET checked with multiple existing users of Paytm Postpaid, who complained on Wednesday morning that they could not see the Paytm Postpaid option while making payments to online and offline merchants.
It is still unclear whether Paytm is in talks with its existing non-banking finance company (NBFC) partners to relaunch the service. The company works with Hero Fincorp to power its personal loans vertical.
The decision to temporarily halt the Postpaid product has affected certain portion of users of the service.
The fintech is expected to address analysts on Wednesday to share its outlook on the loan distribution business.
«We would like to put out very clearly here that this is purely speculative in nature. We would request you to not go ahead with this completely speculative news with the potential to create unnecessary worry among our shareholders. As a listed company, any update on any of our business statutorily has to be shared with the
