\tPaytm partnered with banking institution Citigroup to launch a credit card, boosting the Indian digital payment company’s offering to customers as competition steps up in the market.<\/p>\n
The Paytm First Card will offer Paytm’s 300 million customers 1 per cent cashback on all transactions, differing from current credit cards in the country which offer reward points.<\/p>\n
For Citigroup, the deal gives it access to a thriving digital payments market.<\/p>\n
Boston Consulting Group forecast the country\u2019s digital payments sector would grow to $500 billion by 2020, as a number of companies including Google look to tap into the segment.<\/p>\n
Paytm has particularly benefitted from the government\u2019s decision to ban high-value currency notes in 2016, providing a big boost to digital payments.<\/p>\n
In a news conference announcing the deal, Stephen Bird, CEO of Global Consumer Banking at Citi, said even if 1 per cent of Paytm\u2019s customers take a credit card, it will provide a major boost. \u201cWe think there is tremendous potential for growth of this partnership,\u201d he said.<\/p>\n
SoftBank and Alibaba are investors in One97 Communications, Paytm\u2019s parent company.<\/p>\n
Vijay Sharma, founder and CEO of One97 Communications, said the company was targeting \u201curban aspirational users who ae first-time credit users\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"
Paytm partnered with banking institution Citigroup to launch a credit card, boosting the Indian digital …<\/p>\n
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