Paytm introducing new Postpaid option

Today morning after a new update from Paytm, I noticed a notification from them saying that you can pay use your wallet something like a credit card. I was surprised to see such features in a wallet. Usually, we have such features offered as part of our credit card to ease money rotation. Today Paytm has introduced this feature to attract more customers to join the crew.

Like credit cards, you get a limit of 60,000 Rs as your spend limit on your wallet. You can use this limit to pay our bills and do other spending and all you have to do is pay your bill towards the beginning of the next month. For people who use Paytm regularly for paying bills, this can be a great option. They just have to pay their bills easily and repay the amount to Paytm without any interest or additional charges.

Another interesting thing about this offer is that, you also get rewards and cashback for using this feature. Now cashbacks and rewards are introduced in almost all the applications to attract more customers. Initially when Google introduced Tez for Indians, they introduced something called Scratch cards to give the users rewards for the transaction. That was a strong marketing point for the company. Later after seeing the rewards and cashbacks that Google Pay offered, the other UPI applications also started giving scratch cards and rewards. Now people find PhonePe better than Google Pay because of the frequency of the rewards they offer.

I think paytm is also planning to follow the same strategy to attract the customers. But in a way, it is good because they are able to easily grab the attention of the customers by introducing new features like this. One other thing that I found interesting from Paytm is that they offer a very good payment gateway which can be consumed by developers for their websites. I did check that at a high level and it was quite robust and easy to implement. Coming back to the topic, I guess postpaid feature in paytm is really a cool thing to have but every user should read the terms and conditions before starting to use the feature.

Terms and Conditions

Wherever it is, I think when a new feature is introduced, we should be aware of the terms and conditions before starting to use a feature. That is what keeps both the customers and the company happy. If there are loopholes in the terms and conditions, it becomes a headache for the company and if there is a misunderstanding from the customer side, it can be challenging for the customers.

I did a quick glance on the terms and conditions to understand this feature a bit more in detail. Looks like there are some late payment charges if you fail to pay the money back before the due date. I’m still wondering how they will get hold of the customers if they are doing it for no documentation. There can also be some challenging customers who may try to abuse the system. Hope there will be some way to catch hold of people who try to cheat the system.

Another interesting thing in the Terms and Conditions was that people cannot use this as a temporary cash withdrawal option with the help of the credit limit. Initially, when Paytm was introduced, people started using their credit cards to pull money in and use the cash for other purposes. This was later identified by them and restricted. Even after restrictions people still continue to abuse the system and try to rotate cash. It is good that the company is now able to foresee all these things and make restrictions for the same. Lets see how this options turns out to be fruitful.

Image Source: and screenshots from the Paytm app.

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