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SBI Paytm Credit Card Review

SBI Paytm Credit Card

SBI and Paytm have launched 2 new co-branded credit cards, the SBI Paytm Select credit card and the SBI Paytm card. For Paytm, this is the third attempt to launch a credit card product, hoping to be lucky this time. However, seems like that history will repeat itself.

Paytm’s past attempt at credit cards

As Paytm has a payments bank license, it cannot offer any loan products on its own. Thus, it has to tie-up with other lenders to offer loan products. For credit cards, Paytm initially collaborated with BoB Financial to launch BoB Paytm Credit Card; obviously, the product was not successful. Later on, Paytm launched Paytm First Credit Card in collaboration with Citibank. I think this was a good entry-level credit card, as most Citi benefits were available on this card. However, later on, for reasons unknown, Citibank excluded this card from most of its offers and campaigns. Thus, the Paytm First credit card seems to have died a slow death. Now, they have launched SBI Paytm credit cards in 2 variants.

SBI Paytm credit card

SBI Paytm SELECT credit card

Fees:

  • Annual fee INR1,499 + GST. Waived on spending INR200,000 in a year.

Rewards and Benefit:

  • Joining Benefit:
    • INR750 cashback
    • Paytm First Membership worth INR750
  • Reward Points:
    • 1% cashback as standard
    • Accelerated cashback:
      • 5% cashback on Travel, Movies and Mall purchases through Paytm App
      • 2% cashback on all other purchases through Paytm App
    • 1% fuel surcharge waiver
  • Milestone benefits:
    • INR2000 gift voucher on spending INR400,000
    • INR4000 gift voucher on spending INR600,000
  • Lounge Access:
    • Complimentary 4 domestic lounge visits (Restricted to 1 per quarter)
    • 2-year membership to Priority Pass, lounge visits are not free.

 

SBI Paytm credit card

Fees:

  • Annual fee INR499 + GST.

Rewards and Benefit:

  • Joining Benefit:
    • Paytm First Membership worth INR750
  • Reward Points:
    • 1% cashback as standard
    • Accelerated cashback:
      • 3% cashback on Travel, Movies and Mall purchases through Paytm App
      • 2% cashback on all other purchases through Paytm App
    • 1% fuel surcharge waiver
  • Milestone benefits:
    • Paytm First membership renewal on spending INR100,000.
  • Lounge Access:
    • None

Comparing SBI Paytm credit cards with others

Below is a quick comparison of features of SBI Paytm credit cards and few other popular credit cards.

SBI Paytm Credit Card Comparison

Few issues with SBI Paytm credit cards are as follow:

  • SBI Paytm credit cards offer very low base reward rate of 1%, which is something offered by LTF cards, such as Amazon ICICI credit card or cards with very low annual fees. If someone were paying 1500 as annual fees, one would expect better base reward rates.
  • All accelerated rewards are applicable only on purchases made thru the Paytm app. I was using Paytm app only for making payments at nearby stores, occasional bill payments or movie tickets (BOGO offer). I don’t remember if I ever used Paytm Mall at all. Thus, the opportunity to earn and use cashback on Paytm credit cards seems very limited.
  • Further, with Paytm now charging for loading money in wallet using credit cards, my usage on Paytm app has dropped drastically in the last 2 month. Even SBI Paytm credit cards are not exempt from these charges. Thereby, further reducing the usability of these cards.
  • Additionally, while most credit cards above give cashback in form of a statement credit, Paytm’s cashback is in form Paytm balance. Thus to use the cashback, one has to use the app again. The only other credit card, which has this restriction, is Amazon ICICI credit card. However, to be honest, for an average person, spends on Amazon will be several times higher than that those on Paytm app.

Comparing returns on annual spends of INR200000, where 25% spends are towards maximum cashback category. The SBI Paytm Select card gives reward rate of just 2%, compared to 2.8% reward rate on Axis Ace credit card, 2.4% on Axis Flipkart and 2% on ICICI Amazon credit card.

SBI Paytm Spends Comparison

Final thoughts

With the SBI Paytm credit cards, Paytm is trying to get a foothold in the fast-growing credit card space. However, I think both the cards are very mediocre in terms of rewards and benefits. One can get much better rewards and benefits from several other cards at much lower annual fees or most likely for free.

Do share your views on SBI Paytm credit card.

Image courtesy: Photo by rupixen.com on Unsplash

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