Are you considering Paytm Postpaid as your payment option but are unsure about its pros and cons? If so, you’re in the right place. In this article, we will provide you with an in-depth review of Paytm Postpaid, including its features, benefits, and drawbacks.
Paytm Postpaid is a digital credit service that allows customers to buy products and services on credit and pay for them at a later date. It is a Buy Now, Pay Later (BNPL) option that is offered by Paytm, India’s largest mobile wallet and e-commerce company. The service allows customers to make purchases from over 5 million merchants and pay later in installments.
Advantage of Paytm Postpaid:
Easy to use: Paytm Postpaid is easy to use and can be accessed through the Paytm app. The registration process is simple and quick.
Instant Credit: Once you are approved for Paytm Postpaid, you can start using the service instantly. The credit limit is based on your transaction history with Paytm.
Interest-free Credit: Paytm Postpaid offers interest-free credit for up to 45 days. This feature is especially useful for those who need to make a big purchase but do not have the funds immediately available.
Flexible Repayment Options: Paytm Postpaid allows customers to repay their credit in one go or in easy installments. This provides customers with the flexibility to repay their credit as per their convenience.
No Hidden Charges: Paytm Postpaid does not have any hidden charges. The credit limit, interest rate, and repayment options are transparently communicated to the customers
Disadvantage of Paytm Postpaid:
Limited Credit Limit: Paytm Postpaid offers a limited credit limit to its customers. The credit limit is determined by the customer’s transaction history with Paytm.
Availability: Paytm Postpaid is currently only available to selected Paytm customers. This means that not all Paytm users can access this service.
High Late Payment Fees: Paytm Postpaid charges a high late payment fee of 3% per month on the outstanding amount. This can be a significant burden on customers who fail to repay their credit on time.
Credit Score Impact: Using Paytm Postpaid can have an impact on your credit score. If you fail to repay your credit on time, it can negatively affect your credit score.
Who is eligible for Paytm Postpaid:
Paytm Postpaid can be availed by any Paytm user without the requirement of an existing credit score or employment proof. However, approval for Paytm Postpaid is subject to the NBFC partner’s risk policy.
To apply for Paytm Postpaid, users need to fulfill the following conditions:
- have a valid PAN number
- be above 20 years of age
- complete online KYC verification using CKYC or Aadhaar number
- be a resident of India.
Is Paytm Postpaid Interest Free?
Paytm Postpaid is interest-free if users pay the total outstanding amount on or before the due date. However, if the payment is not made on time, late payment fees and interest charges may apply.
How Paytm Postpaid make money?
Paytm Postpaid earns money through various means:
- Interest on credit: Paytm Postpaid charges interest on the credit availed by customers. This interest is typically higher than the interest paid on savings accounts but lower than the interest charged on credit cards.
- Merchant Fees: Paytm Postpaid earns a fee from merchants for every transaction made through the service. Merchants benefit from increased sales and a larger customer base, while Paytm Postpaid earns a fee on every transaction.
- Late payment fees: If a customer fails to repay the credit on time, Paytm Postpaid charges late payment fees, which contribute to its revenue.
- Convenience Fees: In addition to charging a nominal convenience fee of 0% – 3%, Paytm Postpaid also earns a convenience fee on each transaction processed through its service.
Overall, Paytm Postpaid makes money through various fees and charges associated with providing digital credit to eligible customers.
Conclusion
Paytm Postpaid is a convenient and easy-to-use digital credit service that offers interest-free credit for up to 45 days. Paytm Postpaid also has its drawbacks, such as limited credit limit, availability, high late payment fees, and the impact it can have on your credit score.
In summary, if you are a selected Paytm user who needs a quick credit option for a short period, Paytm Postpaid is a good choice. However, if you are looking for a long-term credit option, other options may be more suitable.
