Paytm Launches Paytm First Credit Card – Here’s Everything you need to know

By | May 14, 2019

Just as every big brands like Amazon, Flipkart, Ola, Paytm too is getting into the credit card lending business. Paytm today (May 14th) has officially launched its Paytm First Credit Card in partnership with Visa & Citi bank, India. This is more like a co-branded credit card that we see with airlines & other brands.

Before we get into the details of the Paytm credit card, you may need to know few details,

  • Paytm parent company One97 Communications started as a Citi commercial banking client back in 2009. Citi was also selected as an advisor on the initial investment by Ant Financial in 2016.
  • Paytm wallet got integrated within Citibank online and mobile app in 2016.
  • Visa recently tied up with Paytm to issue debit cards for its account holders. Currently theyโ€™re issuing only rupay cards which is not so easy to use in many places.
  • Paytm First is the loyalty program which Paytm launched during March 2019 and has good set of benefits.

So now Paytm tied up with Citibank to issue the Paytm first card which is the credit card for mass. This deal is probably the only way Citi can increase the Credit Card userbase exponentially, which may help them to sell their premium cards later.

To make sure Paytm meets the target group demands, this has been launched as a beginner card with a low annual fee. Here are all the details,

Paytm First Credit Card Details

  • Joining fee: Rs.500+GST (charged at the end of the year, waived on Rs.50k spend)
  • Card Type: Works on Visa Platform, contactless enabled. International acceptance, unlike Paytm Rupay debit card
  • Rewards: 1% Cashback on all spends, no upper cap.
  • Type of Reward system: as direct cashback to statement (not to wallet), auto-credited every month.
  • Other Benefits: Paytm promocodes worth Rs. 10,000 on spending a minimum of Rs. 10,000 in first 4 months. Link to T&C

As you see, Paytm claims that it will offer unlimited 1% cashback, “without restrictions, auto-credited every month,” through the new credit card. 1% as cashback is absolutely great for beginners.

You can view the txn details on the Paytm passbook. (similar to Paytm Postpaid). The Passbook of the credit card will also highlight exclusive offers from both Paytm and Citi on a real-time basis.

Paytm, which has about 150 million active monthly users, expects its AMU base to increase substantially with this credit offering. Paytm, the largest wallet player in the country, has a user base of about 300 million at present and expects at least 25 million users to opt for the Paytm First Card, (may happen by 2025).

How to Apply

Citi and Paytm have jointly built a selection tool to identify the potential base and access creditworthiness. This will help enable customers to own a credit card without requiring a prior credit history.

It appears that Paytm First Credit Card would be initially on invite only basis, something similar to what we see with the Amazon Pay card. If everything goes well, everyone should be able to apply in few months down the line.

Applications are open to select Paytm Accounts for now. Check your App!

Crushing the Competition

The basic credit card variants issued by banks are its direct competitors. With this launch, a lot of credit cards currently in the market made for beginners becomes useless, as their reward rate is less than 1% and that too as reward points and not direct cashback.

Along with it, as Paytm can also provide relevant travel/entertainment offers better within their platform, the need for basic cards by other banks goes down. So its time for banks to up their game.

But, if you compare Amazon Pay card with Paytm First Card, I would say Amazon Pay Card has an edge over Paytm card for Amazon users. Yet, if you’re someone who love cashback’s, Paytm’s unlimited 1% cashback might sound appealing.

Bottomline

While Paytm First credit card is not a target for premium cardholders like most of us at Cardexpert, its still an AMAZING card for those whoโ€™re new to the credit system.

If promoted well, itโ€™ll help in increasing the credit card penetration in the country to a whole new level. Its definitely a great move by Paytm for a cashless future.

Updates:

  • Applications are open to tier 2/3 cities as well.
  • Support will be taken care by Citi, just like another co-branded card

What’s your take on Paytm First Credit Card? Feel free to share your thoughts in the comments below.

71 thoughts on “Paytm Launches Paytm First Credit Card – Here’s Everything you need to know

  1. Aakash

    So does PAYTM first card and Amazon ICICI card give Lounge acess ?

    Reply
    1. Sulakshan

      Paytm Rupay debit card gives lounge access (2 per qtr)

      Reply
      1. Anish Gupta

        Thats a RuPay – Platinum Card offer not all Rupay Cards.

        This is like Micro finance, bringing credit access to first time Credit card owners

        Reply
  2. Satish Kumar Agarwal

    In all probability Paytm First card will be offered to tier 2 & 3 cities also, as there target of 25 million customers is ambitious.
    Pros:
    1. Self employed persons will be able to get a Citicard (They used to get denied earlier)
    2. Persons with no credit history will also have a fair shot at it
    3. Other bank cards hardly give 1โ€ฐ cashback directly without any tnc
    4. Paytm custom made offers maybe good at times to keep it at par with amazon/ flipkart

    Cons:
    1. Citibank will soon have a customer base multiple times of what it has currently. This may result in bad customer service or they may launch separate customer care for this card
    2. Merchant offers may get diluted or may not be applicable on this card
    3. Credit limit for most customers will likely be 10K or 20K kind of

    Reply
  3. Ajai

    The only plus point I see for this card is CITI CC discounts on flipkart/amazon.

    Reply
    1. Mayank

      I Don’t remember last time I saw any cashback offers from Citi on Flipkart/Amazon. Only HDFC Bank and SBI are major leaders in providing cashback on Flipkart and Amazon.

      Reply
    2. Santosh

      I think that also might not be applicable, because this might come under a co branded card!

      Reply
      1. Satish Kumar Agarwal

        @Santosh
        Other co-branded cards like IOC Citibank card also provides Citi merchant offers.

        Reply
  4. Jambui

    I think the risk factor would be of paytm.
    Customer support again with paytm.

    Paytm took citi as partner just to satisfy banking regulation as they cant offer cc themselves being a payment bank. Ofcourse initial expertise of citi comes handy to overcome initial hiccups.

    For citi its just another partnership to get idea of rural areas n small towns and select the cream out of it.

    Reply
  5. Anonymous

    How I wish they charge 0% on forex charges! Would be the first card in India to do so.

    Reply
    1. Siddharth Post author

      You shouldn’t even wish that, on a Rs.500 rupees card. ๐Ÿ™‚

      But yes, if the demand is there, they may even launch a premium variant with such benefits. Who knows!

      Reply
  6. Raj

    looks like a walmart version of SBI Elite credit card >_<

    Reply
  7. A2Z

    @Sid
    Citi has practice of giving only 2 cards per customer so will they extend this one as additional or one has to replace existing card to get this one?
    I am having Citi Cashback Card which is 0.50% on regular spends & 5% on Movie/Mobile etc. which is useless so I would prefer swapping it as anyhow paying fee for that card also

    Reply
    1. Satish Kumar Agarwal

      @A2Z
      I also have Citi Cashback card. Thankfully its LTF for me, so I may not go for this card unless so called paytm exclusive offers are too good.

      Reply
      1. A2Z

        @Satish
        I anyhow want to get rid of that cashback card
        I use that only for Citi bank specific offers
        And already hold premium cards from other banks so would prefer swapping it instead of getting it fresh and separate

        Reply
  8. mayank sharma

    They are giving annual fee waiver for spending more than 50K per year

    Reply
  9. Ankush

    I got the offer for PayTM first. I can see that but with joining fees of Rs 750- 100(cashback) = 650 there is no USP for this card even for first timers. For first time the Cash back should have be great higher than MRCC or HSBC Plat. or MMT Card from ICICI. All these do offer some sort return to customer which is completely missing as I can see.

    Reply
    1. Satish Kumar Agarwal

      @Ankush
      The Paytm First offer you are telling about is its membership sold at 750/- per year. The paytm first credit card is different from it.

      Reply
  10. Amex Guy

    This is pretty complicated card. It uses Paytm’s Visa network partnership, but Citi’s banking license. Liability (legally at least) resides with Citi that way, while Paytm get 100% of the cut in MDR. I’m thinking there must be an understanding somehow. The card BINs, therefore, should not be that of Citi’s, so I’m unsure about claims that Citi network offers will work.

    Customer service is 100% Paytm, the reps have no indication of training about this card. Card replacement, as well as issuance, is 100% Paytm. This card will not count towards quota of 2 with Citi, since not issued by Citibank (their definition). So this is also not a legit and easy way to get on Citi system. They weren’t sure if it will show as Citi card on CIBIL. my take — The issuer needs to do that. Paytm Payments Bank can issue cards, but not limit. So they can actually report to credit bureaus.

    I’m thinking based on how deep I’m into product line up of both Paytm and Citi, I should be getting an option to apply soon.

    Reply
    1. Siddharth Post author

      I don’t think Paytm would get 100% of MDR. But if they ever get it, Citi would get something in return, which is nothing but the users. They’re typically spending for the aquisition. So CIBIL should reflect Citi and not Paytm. If it shows Paytm, then it means we’re far away to think about their business plan. ๐Ÿ˜€

      Btw, Even if 5% of Paytm’s over 300 million customers gets the Paytm First Credit Card, Citibank India will become the market leader in credit cards. Maybe this is the reason why Citi agreed to the deal.

      Reply
    2. A2Z

      Hope they give first preference to customers who had opted Paytm First at launch ๐Ÿ˜›

      Reply
      1. Satish Kumar Agarwal

        Dear A2Z
        Its available for all in new paytm app. Anybody can apply.

        Reply
        1. Anish Gupta

          I had read up somewhere that Paytm has or is preparing a Credit Rating System, some time in January, outside the MNCs like Experian. Is that what you mean by Selection Tool?

          Reply
  11. SH

    I think that both Citi and Amex are playing at both ends of the market. Amex with MRCC and Everyday Spend card, and now Citi with this. Anyone who knows how to play this game will not be enticed by this card. But it does get the serve the purpose of getting the would be premium card holders early and then showering them with good service and an occasional offer to upgrade to the next level every now and then.

    Reply
    1. Siddharth Post author

      Amex can’t win lower end of the industry unless they invest in increasing the POS acceptance rapidly.

      Reply
      1. Abhishek Roy

        They can never have a higher acceptance due to huge MDR. Regardless, with the latest offers on MRCC and Platinum Travel for FYF and LTF options (MRCC Only) if we meet the spend targets, this is as good as it can get.

        Reply
      2. Ashu

        Lot of people know to me who applied ot today for this card got Rejection…. (option is now available in updated Paytm app).

        Strangely citi seems to be very strict with guidelines with this card too…. even with an Experian score of 800+, i did not qualify.

        Reply
          1. Satish Kumar Agarwal

            If Citibank goes old Citi way of approving even this card, then they can hardly get the numbers that are talked about.

  12. Eshwar

    Does this card fall under VISA platinum or VISA signature?

    Reply
  13. DareDevil

    The author of the blog seems to be completely ignoring Cashback Cards!!
    Cashback is better than flight tickets/recharges/vouchers, as you get better offer for these on many websites/apps/banks and everybody doesn’t keep traveling/recharging so often.
    Cash(back) is king!!
    Now, the masterstroke:
    unlimited 1% cashback, โ€œwithout restrictions, auto-credited every month,โ€
    1. Unlimited word itself makes it more attractive than StanChart Titanium or HDFC Moneyback as they restrict max cashback amount every month.
    2. Without restriction means no cap for any particular spending category as other cashback cards mentioned above have for Fuel, Utility bill payments or others
    3. Auto-credited. “Jiska sukh, vahi jaane”. This saves you from having to call customer care/ visit website each month/quarter/half to redeem cashback.

    I even do not agree with “Amazon Pay Card wins” statement as cash(back) is better than amazon pay credits as amazon pay has limited, restricted use.

    Reply
    1. Siddharth Post author

      I’ve updated few lines to make it more appealing to Cashback loving readers ๐Ÿ™‚

      Reply
    2. Amex Guy

      Well, cash is king, all things being equal. At 1%, all things are not equal.

      Reply
    3. MAA-traveler

      With due respect to cashback cards, I feel ICICI Amazon is a better card. LTF versus Rs 500 fee. 1% everywhere plus 5% on Amazon, 2% on partner sites versus 1% everywhere.

      Regarding the cashback it will mostly be cashback to your PayTM wallet and not as statement credit. While I agree Amazon Pay balance has more restrictions than PayTM wallet balance, I would as of now value them at par since I see offers with Amazon Pay is much more than PayTM.

      Reply
    4. AS

      Regarding Cashback, most probably it would be credit in Paytm Wallet and not in the card account just like Amazon Pay card.

      Reply
      1. Siddharth Post author

        It is direct cashback to Card, not to wallet. This is the main USP of Paytm Card.

        Reply
    5. Prashant Gupta

      U must be loving cashback……but who will not love free yearly vacations for family for same amount spent……so majority of us points are better…..last year went to HK and Taj exotica goa….this year going to Maldives overwater bungalows ๐Ÿ™‚

      Reply
    1. V V Srikanth

      They didn’t gave only the max cashbacks per category per month but didn’t mention the percentage of cashback. or my understanding is wrong and they are giving 50 cashback for 100 rupees?

      Reply
  14. SS

    Hi Siddharth,

    I was planning on upgrading my SBI Simply Click Card to SBI Prime Card but after reading your post where you highlighted on CIBIL impact I think against it. Now I plan to open new premium credit card, while keeping my oldest a/c of SBI Simply click as it is. Can you suggest some good cards other than SBI & CITIBANK

    Reply
      1. Siddharth Post author

        There isn’t enough data to suggest one.

        Reply
  15. Abhishek Indore

    UPDATE : Apply Now button activated for me. After pressing it, asking for Full Name, PAN No., DOB and Address. But I am not applying now, because I am from Indore and Citi Bank does not service here Credit Cards. Will apply only after confirmation for that. Does not want CIBIL enquiry for no reason.

    Reply
      1. Satish Kumar Agarwal

        It’s in the new updated paytm app. Visit top left corner area and under that option on scrolling you will see.

        Reply
        1. Siddharth Post author

          Not showing up for me yet, maybe because of IOS?

          Reply
          1. Amex Guy

            Update for iOS came for me this evening. The version history mentions the card. Still no option to apply in hamburger menu.

          2. Satish Kumar Agarwal

            It’s not showing for my friend on updated android app either. Means it’s not available for everybody atleast for now. I might have got the option to apply because of my Paytm First relationship.

            Anyway I am not interested in this card right now.

    1. Siddharth Post author

      They are taking application from all cities including tier 2/3 cities. Confirmed with Paytm! You may proceed with the application, if you’re planning to get one.

      P.S. That still doesn’t guarantee approval as there are lot many factors.

      Reply
      1. Ratnesh kumar

        Hi Sid it’s not true..I am residing in Agra U.P but after entering address it’s not not allowing me to apply .In address field it’s showing not serviceable..I randomly tried to enter the address of Delhi and in this case giving me option to apply…Seems presently they are allowing tier 1 cities customers to apply for this card..I have raise the issue on twitter but have not got reply till now..

        Reply
  16. Ankur

    Any idea if this card and ola sbi card provides 1% cashback on all spends or their is minimum spend criteria like hdfc’s above 150 per transaction or like amex has 1 point for 50 spend ? Not able to find anything regarding that.

    Reply
  17. Ratnesh

    First update the app to get option for paytm first card..
    It’s open for everyone..Click on top left profile tab option then scroll down (its just above the 24×7 help section).You will get Paytm first card option..
    Now the main point is they are not issuing this card to tier 2 and 3 cities now…because I am residing in Agra and at the time of applying for this card it showing NOT SERVICEABLE..
    Hope it’s helpful.

    Reply
  18. Ratnesh kumar

    One more update…I have observed ,in this card paytm is just working as intermediary.They are just collecting basic info like pan,dob,address,gender and forwarding it to Citi for processing..That means Citi is fully responsible for issuing this card…Here the procedure is indirectly same as we are applying for Citi credit card directly through Citi website..

    On Paytm app, you can click on the Paytm first card icon present or Paytm First card option in the hamburger menu. On clicking this, a form will appear. Please fill the details correctly, once the details are filled and verified, a Citibank representative will reach out to you for KYC process. If the credit card is approved, it will be mailed to your communication address with the welcome letter.

    NOTE:-Last month I have applied for Citi cashback card through Citi website..But they have not approved the card due to location(Agra) issue..despite having all the things are in order(Experian score 896 and salary in hand 49k,never done late payment on my HDFC,ICICI,SBI CARD)..

    Reply
  19. abhishek Indore

    APPLICATION PROCESS UPDATE : First of all, update the PayTM app from playstore or apple store as there is an update released yesterday. After that, on PayTM app, you can click on PayTM First Card option in the hamburger menu. On clicking this, a form will appear. You have to fill all the details required there. Once the details are filled and verified, a Citibank representative will reach out to you for KYC process. If the credit card is approved, it will be mailed your communication address with the welcome letter.

    Reply
  20. VICKY A KHAN

    I have an experian score of 836 and my mom has 878, still on applying the Paytm First Credit Card on Paytm App is rejected.
    Citi Bank should really stop its traditional way of approving cards.
    On applying, the DOB is taken as one day before of the corrected DOB, strange error, I applied with DOB 15 April, but an email from Citi stated my DOB as 14th April. This same error happened with me, my mom and my uncle even.
    Confused

    Reply
  21. abhishek Indore

    I think, till now there is not a single person who got approved for this Card.

    Reply
  22. Hardik

    Patym card update: applied this card from paytm application,upon filling all the details as usual Citi Bank denied my application as already happened before 2 times, because i am self employed ๐Ÿ™‚ So they are aiming at 25 million users initially by denying application of worthy people,this was my last application to citi bank cards ,if they think self employed aren’t worthy,i also don’t find any worth in holding such cards as there are better cards available in market!๐Ÿ™‚

    Reply
    1. Amex Guy

      > because i am self employed

      Did they say that? I got my Citi card when my company was less than a year old. I still know a bunch of people who are self employed who got approved for Citi (some directly to Prestige) this year. So things have not changed in this regard.

      I’m fairly convinced it is either the industry you operate in, your PIN code, or some dumb reason like that causing the rejection.

      Was your last Citi application under 6 months ago?

      Reply
      1. Hardik

        Amex guy , i am not a normal dumb type user who comments anything without confirmation, From September 2018 citi bank stopped taking self employed applications as that was my second application to citi cards,they told as you are self employed it was denied when i contacted nodal head on call as this was very hurting as my cibil was 823 With only 2 cards in kitty, at that time i got to knew that and as per my knowledge your company had applied it before sept 2018 frame, Today again i sended same mail ,hoping to get reply soon Secondly I haven’t applied citi or any cards from last 8 month’s!!

        Reply
      2. Hardik

        Amex guy,i am really frastursrated with citi bank currently and I don’t think to apply it in near future as 3 rejection are enough they don’t need my application again, i am a sole proprietor,pincode is Mumbai pincode and my neighbour has Citi card so pincode isn’t a issue ( he is sole proprietor too ,got Citi card in 2016) Or can you possibly help with more reasons? I even heard citi doesn’t like when you have more cards too??

        I have sbi,hdfc,amex, IndusInd and axis currently! Thanks in advance!๐Ÿ™‚

        Reply
      3. Pradeep

        @amexguy, its true cities not issuing for self employed. Applying through cities website, when you choose self employed, you get message, card cannot be issued due to internal reasons. Tried with swiggy & zomato app for cities card, as you choose self employed you get message, card cannot be issued due to internal reasons. Anyway there is no query in civil by cities at this stage. May be they are issuing to a/c holders of citi or HNI’s

        Reply
  23. Srikkanth

    Any self employed existing citi bank credit card holder tried applying for this card ? What are the chances of getting approved since citi is issuing the cards..

    Reply
  24. Prashant Gupta

    Got the link on the app. The offers look tempting including free paytm first membership. But already have too many cards sont wanna apply for more.

    Reply
  25. Amann

    Hi Sid

    Does Citi Bank issue cards on card to card basis?

    Can you please review Citi Ultima Card? & Citi Debit Card as well?

    Reply
  26. Anish Gupta

    Does being a PayTM Payment Bank user help ?

    I use it for my monthly expenditure, maintaining an avg monthly balance of 10k in the account.
    I also have the debit card as well.

    Reply

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