In a bid to target new credit customers and expand its monthly active user base, digital wallet major, Paytm, has launched a credit card in partnership with global payments company Citi Bank.
Called Paytm First Card, this is the first card of its kind launched in India by the American card company, which has similar exclusive partnerships across sectors in the US.
It is also the first white-label credit card of its kind to offer unlimited one per cent cash-back without restrictions that would get auto-credited to the card every month. For example, on a spend of Rs 100, a person will get an assured Rs 1 as cash-back. The company’s cash-back driven credit card comes at a time when cash-backs are drying up.
The card will be accepted internationally and is contactless enabled.
There is also a full waiver of annual fee of Rs 500 on spends exceeding Rs 50,000 per year.
Paytm, which has about 150 million active monthly users, expects its AMU base to increase substantially with this credit offering. Paytm, the largest wallet player in the country, has a user base of about 300 million at present and expects at least 25 million users to opt for the Paytm First Card. The card’s features will also be available on Paytm’s app and customers can also apply for the credit card on the Paytm app itself, and track offers and statements on the app.
Vijay Shekhar Sharma, Founder and CEO of One97 Communications, owner of Paytm, said this is the first cash-back driven credit card and the company is targeting at least 20-25 million credit card users initially, and that is likely to double soon, but he didn’t give any time frame on the same.
Paytm will identify the potential base using a selection tool, developed jointly with Citi Bank, to assess the credit worthiness of the consumers applying for the card. This would also provide an innovative alternative to underwrite customers, who otherwise may or may not have a credit history.
Citi Bank’s CEO, Global Consumer Banking, Stephen Bird said, “Paytm First Card gives us a big opportunity to extend our expertise in credit card services to a new all-digital consumer base.”
He further added that this will also help the bank expand its base in Asia’s third largest economy that is hungry for credit. Citi Bank has about 2.75 million credit cards in the country at present.