MUMBAI: Paytm, the leading digital payments platform in the country, has partnered with Citi, the global banking giant, to launch its first credit card. The ‘Paytm First Card’ would be issued and managed by Citi in terms of credit appraisal and underwriting, and the card would be linked to the Paytm app.
“Paytm will identify the potential base using a selection tool, jointly developed by Citi and Paytm, to assess credit-worthiness. This provides an innovative alternative to underwrite customers, who otherwise may or may not have a credit history,” Citi-Paytm said in a press release.
Even if one per cent of Paytm’s 300 million customers take to the credit card offering, it will be a potential 3 million customers, and there is a tremendous potential for growth in the partnership, said Stephen Bird, CEO, Global Consumer Banking, Citi.
“Paytm First Card gives us the opportunity to extend our expertise in credit card services to a new all-digital consumer base,” Bird said.
The Paytm First Card would have a minimum credit limit of `1 lakh, with a 1 per cent universal unlimited cashback, which would be automatically credited to the customer account every month, said Vijay Shekhar Sharma, chairman & CEO, One97 Communications, the parent company of Paytm.
“Cashback. Straightforward cashback, customers understand that. This is money that is going back to my account. Settled in the bank’s credit card bill itself. You never have to bother about redeeming the points or expiry of points,” Sharma said. The card carries an annual fee of `500 that would be waived on spends exceeding `50,000 a year.