Indian e-payments company Paytm is reportedly planning to introduce co-branded credit cards for small and medium enterprises (SME) merchants on its network.

Currently, discussions are underway with several financial institutions, The Economic Times reported.

SBI Card, Bank of Baroda, Standard Chartered or IndusInd Bank can partner with Paytm to launch the co-branded offering, the report further added.

However, Paytm, SBI Card, Standard Chartered and IndusInd Bank did not respond to the development.

Bank of Baroda Financial Solutions, which issues credit cards, said that it is open to co-branded partnerships without divulging specific details.

Notably, the move comes after Paytm announced its entry to personal and merchant loan businesses as it seeks to become a full-fledged financial player.

If launched, the new credit cards for merchants will be available through the app.

Recently, Paytm Lending CEO Bhavesh Gupta told The Economic Times that the company aims to nearly double merchant lending to INR10bn ($135.1m) in the current financial year.

The company already issues co-branded cards in partnership with Citi Bank and SBI Card.

The contactless credit cards, launched with SBI Card, come in two variants, Paytm SBI Card and Paytm SBI Card SELECT. They also include smart app features including blocking/ unblocking the card for online transactions.