Online payments major Paytm will now offer a branded credit card to its users in partnership with US-based banking major Citibank. For an annual fee of Rs 500, Paytm users can avail this credit card for their purchases. The fee will be waived off if annual transactions exceed Rs 50,000.
The bank, which will underwrite this credit card, will have the discretion of granting or rejecting applications for this card. Called Paytm First, this card converts cashbacks into the user’s account in real time, removing the friction of claiming reward points.
While Citi would get to acquire a new set of users via this partnership, Paytm is hoping consumers will spend more on its Paytm’s bouquet of products. Typically, Citi credit card holders spend 10% more than other credit card holders.
“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,” said Paytm founder and CEO Vijay Shekhar Sharma. The company’s buy-now-pay-later product — Paytm Postpaid — will continue to exist even as it rolls out the option to apply for this card.
“The Paytm First card gives us the opportunity to extend our expertise in credit card services to a new all-digital consumer base,” said Stephen Bird, CEO, global consumer banking, Citi.
The bank, which will underwrite this credit card, will have the discretion of granting or rejecting applications for this card. Called Paytm First, this card converts cashbacks into the user’s account in real time, removing the friction of claiming reward points.
While Citi would get to acquire a new set of users via this partnership, Paytm is hoping consumers will spend more on its Paytm’s bouquet of products. Typically, Citi credit card holders spend 10% more than other credit card holders.
“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,” said Paytm founder and CEO Vijay Shekhar Sharma. The company’s buy-now-pay-later product — Paytm Postpaid — will continue to exist even as it rolls out the option to apply for this card.
“The Paytm First card gives us the opportunity to extend our expertise in credit card services to a new all-digital consumer base,” said Stephen Bird, CEO, global consumer banking, Citi.
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