The cards offer rewards and savings when used on the Paytm App and also at online and offline stores
This co-branded product will enable users to access Paytm First membership worth ₹750
SBI and Paytm target to bring 'new to credit' users into the formal economy
Paytm’s parent, One97 Communications, has partnered with the State Bank of India (SBI) to launch Paytm SBI Card on the RuPay network.
Further, Paytm is planning to launch UPI International. The fintech giant is also growing its partnership with SBI that began in 2020. Back then, the two launched Paytm SBI Card and Paytm SBI Card SELECT in partnership.
The new RuPay credit card will offer several welcome benefits including exclusive credit privileges worth up to ₹75,000 with a complimentary Paytm First Membership to avail OTT platform membership, flight tickets discounts through the Paytm app.
According to Paytm, the cards offer rewards and savings when used on the Paytm App and also at online and offline stores. Using this card on Paytm app, the users will receive a cashback of 3% on booking movie and travel tickets, 2% cashback on all other purchases on its app, and 1% cashback on spends elsewhere.
Commenting on the initiative, Praveena Rai, COO, NPCI, said, “Since NPCI’s launch of credit card services on UPI, we are constantly working towards providing unique, value-based RuPay credit cards. It is exciting to see RuPay progressively establishing itself as a modern, contemporary, and youthful brand by offering customised value propositions backed by cutting-edge technology.”
This co-branded product will enable users to access Paytm First membership worth ₹750, accompanied with other benefits. The Platinum card holders will also receive added benefit of a 1% fuel surcharge waiver and ₹1,00,000 cyber fraud insurance coverage.
Sharing thoughts on the same, Paytm’s president Bhavesh Gupta said, through this partnership, the companies aim to revolutionise the way credit is consumed in India, by bringing ‘new to credit’ users into the formal economy.
SBI has been adopting technology across its several layers of operations for some time. It partnered with JP Morgan, to use the latter’s blockchain technology to speed up overseas transactions.
Also, the government has been upfront promoting the use of RuPay and UPI digital transactions. This year, the Union Cabinet approved INR 2,600 Cr worth of incentives for the promotion of digital payments.
Additionally, the Indian credit industry is undergoing many changes along with adoption of new payment modes. Availing credit on UPI has been quite a trend in the industry.
Recently, credit card management platform Kiwi has bagged $6 Mn in a Pre-Seed funding round from Nexus Venture Partners, Stellaris Venture Partners, and a host of angel investors.