PayTM and Citibank are coming together to launch a Paytm First Credit Card today, which will be powered by Citi. Last evening, Paytm founder Vijay Shekhar Sharma put out a sneak peek of the new Paytm First card on his Twitter account, which confirmed the launch.
Yo! The First. Paytm First. pic.twitter.com/5kAxozc2IH
— Vijay Shekhar Sharma (@vijayshekhar) May 13, 2019
Paytm First is a new loyalty programme launched by Paytm, which took off in March 2019, and provides benefits across various categories such as taxi rides, music and dining. It includes a Zomato Gold membership, an annual Gaana membership, a yearly Sony Liv subscription, ViU Premium, Eros Now annual membership, Uber benefits up to INR 6000; Uber Eats benefits up to INR 2400 and other offers.
Paytm has tied up with Visa very recently, which will enable the Paytm Payments Bank to issue debit cards which can be used for international transactions. And now, they are also getting into credit cards along with Citi.
Citi and Paytm have been collaborating on many promotions for a while now, including the wallet load promotion of last year, and discounted movie tickets every Friday. You should expect enhanced rewards for PayTM spends, some lounge access and other benefits on this card. But given this card comes from the PayTM stable, I won’t be surprised if it might turn out to be a cashback card.
Amazon, last year, launched a co-branded credit card with ICICI Bank, which might have been responsible for the current wave of co-branded credit cards of Indian brands. Credit card collaborations help internet companies know more about the transaction patterns of customers and then bundle it with their rewards, getting a better assessment of their paying capacity. Banks, on the other hand, get to acquire new customers at a relatively low cost.
Ola, which did not follow through on its co-brand card with ICICI Bank, is now planning to launch a co-brand card with SBI Cards. Flipkart is also planning to launch a credit card this year.