Delhi-based One97 Communications’ digital payments platform Paytm has launched its first credit card, the Paytm First Card, in partnership with banking giant Citibank, a joint statement by both companies said.
Paytm said the credit card is a bid to target new credit customers and expand its monthly active user base numbering nearly 150 million. Issued by Citi, the card will be an offering by Paytm.
The Paytm First Card will be a contactless, internationally accepted card with redeemable offers exclusive to the Citi Digital platform. The company claims it will be India’s first card that offers 1% cash back on every transaction, which will be automatically credited every month. Paytm also said that the card will entail no restrictions on earning categories. The annual fee will amount to Rs 500, which can be waived provided annual spends exceed Rs 50,000.
Customers of Paytm can apply for the credit card on the Paytm app. Users can access their credit card transactions’ history and track offers on the Paytm First Card passbook. Customers will be able to redeem promo-codes worth Rs 10,000 provided they carry out transactions worth at least the same amount on Paytm-Citi’s credit card within the first four months of issuance.
“Our new offering will help spur large-ticket cashless payments,” said Vijay Shekhar Sharma, chairman and CEO, One97 Communications.
Paytm will identify the potential base using a selection tool to assess credit worthiness. The tool has been jointly developed by Citi and Paytm in order to provide for an alternative to underwrite customers who may not have a credit history.
“The introduction of Paytm First Card is reflective of Citi’s commitment to expand India’s digital ecosystem,” said Shinjini Kumar, Country Business Manager, Global Consumer Bank, Citibank India. “Integrating the Citi service experience within a Paytm proposition will build engagement, thereby driving usage,” added Kumar.
Paytm’s parent company started as a Citi Commercial banking client in 2009. In 2016, Paytm wallet was integrated with Citibank’s website and mobile app. Citi and Paytm have consistently provided exclusive offerings for Citi debit and credit card customers, such as cashback on movie tickets booked on the Paytm app.
Paytm claims to have a user base of about 300 million at present who recently could avail of Paytm’s recurring payments offering which might be enabled on the Paytm First Card. Citi, on the other hand, has about 2.75 million credit cards in the country, as per the joint statement.