Paytm Now Releases Credit Cards In Partnership With Citibank

India’s largest mobile wallet platform Paytm announced to offer “credit card” service, adding to its current digital ecosystem. That is supposed to be Paytm’s strategy to improve its declining business performance in India.

The Landscape of Credit Card In India

Market penetration remains extremely low in India, with 50 million people possessing a credit card now in the nation. One of the reasons is that local banks get little understanding of customer’s behavior related to this payment method. Meanwhile, the government has been withdrawing much of cash in the country in these recent years, supporting “cashless India” campaign. This is a big opportunity for such digital payment businesses.

Partnership With Citibank

On Tuesday this week, One97 Communications’s subsidiary Paytm introduced its Paytm First Credit Card, accompanied with fascinating offers. The cards are issued and co-branded by Citibank, which has an intention to expand its customer base in India.

As the company said in its announcement, Paytm First Credit Card is globally valid, working both in local and international territories. According to a statement, it offers new customers 1 percent cashback on purchases, applied globally without limits on earning categories. It also offers a discount code worth Rs 10,000 for users who spend at least Rs 10,000. A charge of Rs 500 per year is required but could be refunded for those who spend over Rs 50,000 a year.

With these promotion campaigns, the firm targets to have 25 million credit card customers in the coming months.

Why Does It Branch Out to Credit Card?

Noida company is experiencing the hardest time ever in India. Paytm generates most of its revenue through payment service Paytm Wallet and e-commerce business Paytm Mall. The wallet has recorded extremely high growth from 2017 to 2018, due to the government’s “Digital India” campaign. However, in late 2017, Internet giants Google and Whatsapp jumped into the game, introducing their own online payment platforms. The company is facing more competition than ever, though the forecasted growth rate remains positive for the company in 2019.