ICICI Bank ties up with Paytm to offer short-term instant credit

ICICI Bank on Thursday said it is tying up with Paytm to offer short-term instant digital credit on the latter’s e-commerce platform. The new offering will enable customers common to the bank and Paytm to access instant credit to pay for movie tickets, bills, flight tickets and other goods. Last month, HDFC Bank had told FE that it would offer a digital credit line to users of its PayZapp wallet. ICICI Bank’s product is based on a big data-based algorithm for real-time credit assessment of customers, which will use a combination of elements such as credit bureau checks, purchase patterns and frequency of purchases to ascertain the credit–worthiness of a customer. Based on the credit score of a customer, the bank will offer up to 45 days of an interest-free credit limit ranging between Rs 3,000 and Rs 10,000. The credit line will be extendable up to Rs 20,000 based on their repayment history.

Called Paytm-ICICI Bank Postpaid, the product will also offer a quick check-out to customers with a Paytm passcode. The product will later be available to non-ICICI Bank customers using the Paytm app.Once the credit limit is set up for a customer, a consolidated bill will be generated on the first day of the next month, which must be paid by the 15th of the same month. Anup Bagchi, executive director at ICICI Bank, said this was the first time a lender is doing real-time credit assessment. “We are using financial data, but we are also using behavioural data of the customers to do our credit scoring,” Bagchi said.

ICICI Bank