Paytm to foray into Neo Credit Card Space targeting Mass Users of Bharat
In its press release Paytm Lending, a Paytm subsidiary shared its plan of launching credit cards in partnership with leading banks.
The credit card will be Paytm's first neo and open banking offering focusing on new to credit customers of Bharat.
If we look at some special features of the card, it includes 100% app based branchless operation, free insurance, and fraud prevention, amazing rewards program providing cashbacks directly into Paytm Wallet, and bundled lifestyle, food, and travel memberships.
Paytm credit card will also come with an app-based spend management dashboard which will make managing credit card spends very easy for its customers.
Indian credit card market is led by HDFC Bank with ~15 Mn credit cards issued which is approximately 33% share out ~50 Mn total issued credit cards, Paytm Lending is targeting a modest 4% of the pie with a target of 2 Mn credit cards in next 18 months.
Previously Paytm had also launched a co-branded credit card called Paytm first credit card with Citi bank as its partner.
Head Quartered in Gurgaon Paytm Lending is headed by Bhavesh Gupta, He was previously associated with Clix Capital(Formerly GE Capital) in the capacity of CEO.
Bhavesh Gupta has vast banking experience previously working with IDFC First Bank and ICICI bank.
With this announcement Paytm is likely to compete with likes of Slice, Spenny, One Card, Ola Money Card in the Neo credit card space.