Like any other credit card, customers will be able to pay back a sum in multiple monthly instalments. Paytm First Credit Card will work both in India and elsewhere and support contactless transactions. In the first four months of issuing a card, the company will offer its customers discounts worth Rs 10,000 ($142) on spending of Rs 10,000. As part of the package, Paytm’s credit card holders will be able to avail dining, shopping, travel and other offers that Citi Bank provides to its privilege customers. “Our new offering is designed to bring utmost flexibility to our customers in their digital payment options and will help spur large-ticket cashless payments,” Vijay Shekhar Sharma, chairman and CEO of One97 Communications said in a statement.īacked by SoftBank, Alibaba, and most recently Warren Buffett’s Berkshire Hathaway, Paytm has the capital to spur the adoption of its new credit card. So Paytm is now expanding its financial offerings and credit card play fits well in it. With more than 200 million active users, Paytm rivals banks on both the number of customers and volume of transaction it processes. Google Pay reached 100 million installs on Google Play Store recently, and WhatsApp plans a nation-wide roll out of its payment feature in India later this year. This has made payments more convenient for users, who are increasingly jumping ship. UPI apps such as PhonePe that have emerged in the last two and a half years now see more transactions than wallet apps. To make matter worse for Paytm, Google and Facebook - two companies that have larger userbase in India - have entered the payments space. But then the government launched its own payment infrastructure called UPI, which removes the need for a middleman. This business flourished for years, especially in the months after the Indian government invalidated much of the cash in the nation.
Paytm makes money from this accumulated sum. Users park their money in Paytm and do transactions from there. 5kAxozc2IHīut more importantly, payments itself has become a commoditized space. And it also doesn’t help that banks in India are still wary of issuing credit cards to those who don’t perfectly fit the traditional blue collar job. With people conducting most of their businesses through cash in the nation, banks have little understanding of a customer’s credit history and score. The penetration of credit cards remains very low in India with under 50 million people possessing one. The company is hoping to rope in about 25 million credit card customers in the coming months. The cards, issued by Citi Bank, will be the first in the country to offer unlimited, one percent cashback on purchases, Paytm claimed in a statement.
The firm, operated by One97 Communications, today unveiled Paytm First Credit Card with lofty benefits as it races to bulk up its financial offerings. On Tuesday, it added another category to the list: credit cards. Paytm, India’s largest mobile wallet app, has branched out to several businesses in recent years as threat from Google and Facebook grows.
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