Paytm, the digital payments major, announced its entry into the credit card market with the introduction of its first-ever credit card. The card is issued and co-branded by one of the leading private sector banks, Citi Bank.
The issuance of the card and the underwriting will be handled by Citi Bank and Paytm will look into the distribution and digital interface associated with the service. Potential customers of the credit card will be chosen based on a tool, prepared jointly by the bank and the payments app, to assess their creditworthiness.
Individuals without a credit history may also be eligible to avail the product. Only the individual’s digital finance-related behaviour will be taken into consideration while analysing the creditworthiness. It was made known at the launch event that an individual’s subscription or non-subscription to Paytm’s loyalty programme will not be tied to his/her creditworthiness for the credit card.
The users of Paytm First credit card will be charged Rs.500 per year for all online and offline purchases. However, this amount can be waived if the individual spends Rs.50,000 on the credit card in a year.
The contactless card comes with an array of benefits on travel, dining, and shopping. The user will get 1% cashback for every transaction which will be added to the account balance each month. Individuals will also have access to promo codes valued up to Rs.10,000.
The Paytm First Card will allow individuals to view all transactions carried out using the card and also the offers available from Citi and Paytm.
Source: Your Story