Paytm may turn Credit Rating Agency as it explores business models in India

Mobile commerce company Paytm is all set to become a credit rating agency as it looks for newer earning avenues by integrating its largest investor Alibaba's technologies with the Indian market.

Delhi-based Paytm, which sold 25% stake to China's Alibaba last month, is working closely with the company to try out newer business models in India, including building a credit rating agency based on customer transaction data on its digital wallet. Paytm will bring Alipay's credit rating service called Sesame Credit to India with a local touch, possibly a different name, and will use a system based on online and offline data to generate individual credit scores for consumers and merchants using Paytm, its founder Vijay Shekhar Sharma told ET.

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"We are on our roadmap to touch 100 million customer by end of this year," said Sharma. "This large customer base will help us create newer business models in a way no one ever imagined." Explaining how the platform will work, Sharma said, "Based on the transactions on our platform and big data technologies, we can tell what the customer's monthly income is.

We will sign up with affiliates to provide these customers with cash advances, personal or education loans." Paytm is also working with Alipay -- Alibaba's mobile payment platform -- on a technology that'll use face recognition to authenticate payments. "Wallet customer in China does so many more transactions in a day that we are going to bring those technologies to India.

For example, in a store, instead of paying through cash or card, you'll be able to show the shopkeeper a QR code on your mobile, he'll scan the code and the payment will be done in a single click," Sharma explained. Paytm is working with Mumbai Metro, fast food chain Faasos and Cafe Coffee Day to allow customers to pay at the physical location with Paytm wallet.

Sharma said the company will be working with many other companies in the lifestyle and hospitality space to enable in-store wallet payments. The company already does over 32 million transactions a month through its 27 million wallet customers and more than Rs 60 crore is being added to Paytm wallets, Sharma said.


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