Paytm has relaunched its buy-now-pay-later product, Postpaid, as a credit line on UPI, over a year after pausing the service. The fintech company has partnered with Suryodaya Small Finance Bank to offer the new scheme, titled “Spend Now, Pay Next Month,” providing users with instant short-term credit.
The service is being rolled out selectively to customers most likely to use it, with broader availability planned in the coming months. The facility allows up to 30 days of short-term credit.
Paytm had wound down its Postpaid product in May 2024, citing a broader decline in industry-wide asset quality. Initially launched as a BNPL product, Postpaid was later repositioned as a small-ticket personal loan offering before being paused indefinitely in December 2023. The company had stated it would not resume the business until the credit cycle improved.
During Paytm’s Q1 earnings call, CEO Vijay Shekhar Sharma noted that lenders had become cautious about small-ticket loans under INR 50,000. “I personally love the product, and I’m personally a champion of it… when the personal credit comes back, BNPL will come back. We totally believe that it will come back,” he said. Sharma added that BNPL remains one of Paytm’s strongest growth levers, capable of driving outsized revenue and margin expansion compared to the steady growth of its payments business.
The relaunch as a credit line on UPI reflects improved market sentiment and comes at a time when Paytm has returned to profitability. The fintech reported a net profit of INR 122.5 crore in Q1 FY26, compared to a loss of INR 840.1 crore in the same period last year. Operating revenue grew 28 percent year-on-year to INR 1,918 crore.
The credit line on UPI model is also gaining traction with other major players. PhonePe launched a similar offering in August 2024, while Flipkart’s super.money acquired BNPL startup BharatX to strengthen its credit-on-UPI services.
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