Paytm to use Alibaba's technology to build a credit rating agency based on customer's digital wallet

BENGALURU: 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. New 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 wal let. 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.

“We are on our roadmap to touch 100 million customer by the end of this year,“ Sharma told ET. “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 and education loans, etc.“

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 Café Coffee Day to allow customers to pay at the physical location through their Paytm wallet.