One97 Communications Limited, the parent company behind Paytm, has recently introduced a new service called Paytm Postpaid. This partnership is with Suryoday Small Finance Bank.
This innovative service enables users to enjoy short-term credit facilities and provides the flexibility of ‘Spend Now, Pay Later’.
Payment Flexibility
Paytm Postpaid allows customers to make payments using a credit line on Unified Payment Interface (UPI) at various merchant touchpoints. This includes scanning UPI QR codes, online shopping, and paying for recharges, bills, and bookings through the app.
The service provides up to 30 days of short-term credit, offering users the convenience of making immediate purchases with repayments due in subsequent months. It optimizes daily payments, enhancing reliability and speed.
Rollout and Access
Currently, Paytm Postpaid is being rolled out to a select group based on specific spending behaviors but will be expanded to more customers soon. Activation provides immediate access to credit without any waiting period.
The service leverages Paytm’s technology for secure real-time transactions, offering users the flexibility to manage their liquidity while minimizing impact on daily expenses. Merchants benefit from universal acceptance and assured instant settlements through familiar UPI payment methods.
Market Outlook
The Buy Now, Pay Later (BNPL) market in India is expected to grow significantly, with an annual growth rate of 13.4% to reach USD 21.95 billion by 2025 and a compound annual growth rate of 9.8% from 2025 to 2030.
Regulatory Developments
In August 2025, the Reserve Bank of India granted preliminary authorization to Paytm’s Payment Services division to operate as an online payment aggregator. This step was crucial following earlier regulatory interventions and restructuring efforts by the company.
Following this, in August 2024, Paytm had submitted an application for a payment aggregator license to the Reserve Bank of India, after facing instructions to close its payments bank entity.
