Paytm, on Tuesday, announced that it has launched its first rewards and loyalty programme that works on a subscription basis. Users can subscribe to the programme, called Paytm First, by paying an annual subscription amount of Rs.750. Through the application, users can manage subscriptions offered by other applications such as Uber, Gaana, and Zomato on a single platform.
Paytm First users will have access to an array of shopping, food, and entertainment apps. The company has partnered with Zomato Gold, Uber Eats, Uber, Sony Liv, Gaana, Eros Now, and ViU Premium. Paytm First users can get exclusive benefits such as cash backs, discounts on the movie ticketing platform, and offers in Paytm Mall. The company said that each user can get benefits valued up to Rs.12,000. Further, new subscribers will get an immediate cashback of Rs.100. This is being offered currently to encourage subscription.
The aim of the company is to get 3 million subscribers in the first year. The app is said to have 50 million users currently. The programme was launched with the aim to reduce user attrition by at least 50%. As per reports, Rs.250 crore is being invested in this line of business.
Paytm First will now be in competition with the loyalty programmes of Amazon and Flipkart. Amazon introduced the subscription programme, Amazon Prime, in 2016 at an inaugural price of Rs.499 per year. Currently, Prime subscription costs Rs.999 per year. Flipkart, too, has a loyalty programme where users earn digital coins on purchases which they can redeem in future transactions. This, however, is not a paid service.
Source: Financial Express and Times of India