Suryoday SFB shares rise 5% as Paytm launches UPI-based credit line product with lender

Paytm on September 17 announced the launch of Paytm Postpaid as Credit Line on UPI, in partnership with Suryoday Small Finance Bank. The service will offer 'Spend Now, Pay Next Month' convenience to the consumers, the company said.

After the announcement, the shares of Suryoday Small Finance Bank shares surged nearly 5 percent to close at Rs 133.50 apiece on Wednesday. Paytm shares however closed nearly 1 percent lower at Rs 1,221 apiece.

What it Paytm Postpaid?

The new service, which is powered by NPCI, will provide customers with instant short-term credit. "With Paytm Postpaid, consumers can now make payments using a credit line on UPI across all merchant touchpoints. This includes scanning any UPI QR code, shopping online, or paying for recharges, bill payments, and bookings on the Paytm app. The facility offers up to 30 days of short-term credit, giving individuals the flexibility to spend instantly and repay the following month. It makes everyday payments smarter, faster, and more reliable. The service is currently being rolled out to a selected base, identified through spend behaviour, and will be expanded to more consumers in the coming period," the fintech platform said.

The service will leverage s Paytm's technology strength in secure and real-time payments, and will give customers the flexibility to manage liquidity without disrupting daily expenses, the company said. It added that merchants will be able to benefit benefit from universal acceptance and assured instant settlement through the familiar UPI payment flow.

How to onboard on Paytm Postpaid:

1. Open the Paytm app and click on the Paytm Postpaid icon on Home page.
2. Create your Credit Line on UPI account by filling in some basic details, validate your KYC and setting up the mandate.
3. To begin using the Credit Line, link your account with UPI.
4. Choose 'Suryoday Small Finance Bank' and authenticate using Aadhaar.
5. Set up a UPI PIN and start making payments through the linked credit facility on UPI.

Speaking about the development, Paytm's Chief Operating Officer (Lending) Avijit Jain said, "In India, families and individuals often look for a little extra flexibility to manage their everyday expenses with ease. We are delighted to bring Paytm Postpaid, Credit Line on UPI, which makes it possible to spend instantly and comfortably repay the next month. Whether it’s paying at a local store, managing household bills, or shopping online, this solution is designed to make life simpler. In partnership with Suryodaya Small Finance Bank and powered by NPCI, this launch reflects our commitment to offering secure, compliant, and innovative payment solutions that truly put consumers first."

Suryoday Small Finance Bank's Chief Information Officer and Head Digital Banking Vishal Singh meanwhile said, "This collaboration reflects our commitment to expanding access to secure and responsible credit. By enabling Paytm Postpaid on UPI, we are empowering consumers with greater flexibility to manage their everyday spends, while ensuring the reliability of a regulated banking partner. Together with Paytm, India’s trusted payments platform, we aim to deliver a seamless and reliable credit experience that combines convenience with responsibility."