Biznextindia : On Friday, One97 Communications Limited (OCL), the parent company of Paytm, India’s foremost payments and financial services company known for its pioneering work in QR and mobile payments, on Friday announced a strategic alliance with Shriram Finance Limited, the largest retail Non-Banking Financial Company (NBFC) in India. The collaboration aims to provide a wide range of financial services, including loan products, to Paytm users. This partnership will digitally integrate Shriram Finance’s offerings onto Paytm’s platform, thereby facilitating increased credit accessibility and promoting financial inclusion throughout the nation.
With this partnership, the two brands are coming together to augment digital financial services including distribution of credit. Paytm has redefined the traditional brick and mortar model of loans distribution with digital-first credit distribution, ensuring last mile access to users. This strategic partnership combines Paytm’s wide reach and technology infrastructure with Shriram Finance’s lending expertise as the largest retail NBFC in India. Powered by Paytm’s fintech leadership as a loan service provider (LSP) focussed on compliance and quality of loans, this partnership will integrate Shriram Finance wide geographical presence across the country especially rural areas. With its technology-led lending, Paytm has strengthened the credit ecosystem by partnering with marquee financial institutions to digitally distribute loans. To start with, merchants on the Paytm network will get a chance to avail loans from Shriram Finance and then it will be extended to consumers loans.
Umesh Revankar, Executive Vice Chairman – Shriram Finance Ltd said, “India is witnessing high growth in retail credit demand, it is only likely to increase with greater participation from rural and semi-urban India. A lot of this demand will come from digitally literate, young generation brought up in mobile telephone proliferation era and those having comfort in having all their transactions through handheld devices. To take advantage of this opportunity while staying true to our ethos of serving the unserved and underserved, and vision of becoming the most preferred financial services destination, Shriram Finance has collaborated with the pioneer of mobile payments, Paytm, across the country.”
Vijay Shekhar Sharma, Founder and CEO, Paytm said, “Our commitment to expand credit distribution gets further boost with our new strategic partner Shriram Finance. We are happy that together we will be able to create credit offerings to serve small merchant partners and entrepreneurs of India.”