Credit cards have always remained a status symbol for rich and affluent people and credit cards are always considered a risky affair to use if you don't pay the dues on time, as it attracts very high-interest rates going as high as 42%. Moreover, getting a credit card is also not so easy considering it requires a lot of KYC documents and a good source of income. Paytm is looking to digitize this credit card market by enabling its users to avail of credit card facility with minimum documentation. For this, Paytm is looking to offer a co-branded card by partnering with various credit card companies. They are designing an innovative digital experience on the app allowing users to manage their overall spending and have full control over card usage. Paytm is targeting to issue 20 lakh cards in the next 18-24 months. To gives this into the perspective of opportunity size Paytm is talking about, in India at present we have only 5 Crores credit cards. So, if Paytm with its digital initiative is able to provide credit cards to 20 Lakh users, it will completely change the face of the Credit card market in India. What are the features of the App? "With this service, they will give complete control to cardholders to manage their transactions in real-time. It will be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card, and viewing outstanding credit-limit. It will also have options to safeguard users against fraud by switching off the card for contactless payments or international transactions when not required. The credit card will provide insurance protection against fraudulent transactions to protect users’ money" We at UnlistedZone are in the view that the recent business opportunities Paytm is targeting in the financial world will help the company to reach new heights in the future. Businesses of Paytm 1. It has a license for Payment bank. The Paytm payment bank earns interest on deposit available with it. So more the deposit, more will be the profitability of Paytm. Paytm Payment bank is the only payment bank in India which is profitable at the operational level for the last 2 years. 2. Recently, it has acquired general insurance company Raheja QBE to launch Insurance services to its users. This business will come into the picture next year once they get the IRDA Approval. https://unlistedzone.com/paytm-is-acquiring-general-insurance-business-from-raheja-qbe/ 3. Recently, Paytm has started its broking services and looking to tap the huge opportunity available in the stock market. https://unlistedzone.com/paytm-money-starts-full-fledged-broking-services/ 4. They have Paytm mall an e-commerce company to buy Mobile Phones, Electronics, Home Decor, Bags, Shoes & Clothing for Men & Women etc. Paytm Unlisted Share Price In the last 8-10months, the share price of Paytm has fallen from 15K to 11K due to negative sentiments created in the economy due to Covid-19 and the huge competition created in the market by Google Pay and Phonepe. The last funding round that has happened in Nov-19 valued Paytm unlisted share at ~Rs. 16000 per share. So, considering that and the way Paytm is aggressively working to achieve profitability in the coming years, we believe Paytm can be a dark horse.