An e-commerce payment system and digital wallet company, Paytm partnered with non-bank financial firm Clix Finance on Tuesday. The partnership aims to provide instant digital loans to customers and merchants on its platform. The latter will offer loans to Paytm customers via “deferred or postpaid payment” and “merchant lines” facilities.
Millions of Paytm customers will now be able to obtain instant digital loans using proprietary machine learning (ML) models developed by Paytm and Clix. With the partnership with Clix Finance, Paytm will be able to introduce new products that aim to improve the customer experience as well as meet customer demand.
One of the development accounts, Nitin Misra, Senior Vice President, Paytm, said, “We have seen an overwhelming response to Paytm’s postpaid and merchant loan products. With this partnership, we aim to bring our credit-tested algorithmic lending products to a larger customer and merchant base. “
“Together, we will co-create many unique and personalized products that will work seamlessly to meet the unmet financial needs of millions of customers,” adds Pramod Bhasin, Founder and President of Clix.
Currently, over 60 million MSMEs in India are in urgent need of going digital. After this development, the chances of clients as well as MSME traders will have easier access to funds.
Prior to this development, Paytm released an AI-based router engine that will increase payment success rates. In addition, Paytm will also venture into the education sector with financial services including insurance and loans.