Spend now, pay next month: Paytm rolls out Postpaid Credit Line on UPI with Suryoday Bank

One 97 Communications Ltd., the parent of fintech major Paytm, has introduced Paytm Postpaid as Credit Line on UPI in partnership with Suryoday Small Finance Bank.

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Powered by the NPCI, the new service enables consumers to “spend now and pay next month,” offering up to 30 days of interest-free credit. 

The facility allows payments at any merchant UPI QR code, as well as online transactions, recharges, bill payments, and bookings on the Paytm app. Initially, the service is being extended to a select base of users, identified by spending patterns, before a wider rollout.

Paytm said the offering leverages its secure, real-time payments technology and aims to provide liquidity without disrupting daily expenses. Merchants, meanwhile, benefit from universal UPI acceptance and assured instant settlements through the familiar UPI payment flow.

Avijit Jain, chief operating officer – lending at Paytm, said the product is designed to give families and individuals more flexibility in managing everyday costs.

“In India, families and individuals often look for a little extra flexibility to manage their everyday expenses with ease. We are delighted to bring Paytm Postpaid, Credit Line on UPI, which makes it possible to spend instantly and comfortably repay the next month,” Jain said.

Vishal Singh, Chief Information Officer and Head Digital Banking at Suryoday Small Finance Bank (SSFB) said, “This collaboration reflects our commitment to expanding access to secure and responsible credit. By enabling Paytm Postpaid on UPI, we are empowering consumers with greater flexibility to manage their everyday spends, while ensuring the reliability of a regulated banking partner. Together with Paytm, India’s trusted payments platform, we aim to deliver a seamless and reliable credit experience that combines convenience with responsibility.”

Paytm further said that the users can activate the facility through the Paytm app by completing KYC verification, authenticating with Aadhaar, linking their UPI account with Suryoday SFB, and setting up a UPI PIN.