Financial services platform Paytm has partnered with credit card company SBI Card to launch Paytm-SBI Card co-branded credit cards. The settlement rails are being provided by Visa. This is the second credit card product from Paytm; the first one was launched in partnership with Citibank.
Among the card's multiple new features, cardholders will be able to block or unblock the card through a single click on both the Paytm app as well as the SBI Card app; even contactless payments can be switched off in a similar fashion to prevent fraud.
Interested customers can apply for the card through the Paytm app.
This strategy is in line with Paytm’s attempt to emerge as a larger financial services player going beyond digital payments, foraying into lending, insurance, broking and mutual funds.
For every transaction done on the card, there will be cashback offered and additional cashbacks will be given out to card transactions done on Paytm app and Paytm Mall app.
“Our strategic partnership with Paytm is intended towards making credit cards more accessible to all. Through this partnership, we will also be able to leverage Paytm`s extensive reach to bring new-age, digitally evolved consumers across India, a safe, convenient, and rewarding payment solution, combined with the benefits of a credit card,” said Ashwini Kumar Tewari, managing director, SBI Card.
The lender will be evaluating applicants on the basis of historical transactions undertaken by the customer on the Paytm app.
Bhavesh Gupta, who heads the lending at Paytm, pointed out that this product will help democratise credit cards in an otherwise credit-starved market. In India, there are only around 55 million credit cards with industry estimates suggesting around 30 to 35 million unique users. To put this number in perspective, there are more than 300 million bureau reports, that is people who have taken credit from formal channels in some form or the other.
