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Paytm First credit card: Should you opt for it?

Paytm First credit card: Should you opt for it?

Paytm First credit card: Should you opt for it?
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By Nidhi Chugh  May 16, 2019 1:20:46 PM IST (Updated)

Paytm First Card seems to be fit for its loyalists. But for those who do not use Paytm often, applying for a Paytm First Card may not be the best option.

Digital payments app Paytm has partnered with Citi Bank to launch its first credit card on Tuesday. The  Paytm First Card, issued by Citibank, doesn't involve any hidden fees or charges, the company said in a statement. An annual fee of Rs 500 will be fully waived off on expenses above Rs 50,000 per year. The credit card can be availed through Paytm app.

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The app will also allow users to keep a track of their transactions by using the Paytm First Card passbook, which will highlight exclusive offers from both Paytm and Citibank, on a real-time basis.
The card comes with unlimited cash back and will be accepted in India as well globally. However, it remains to be different from regular bank credit cards that offer reward points.
Here's why:
With a Paytm First Card, one can avail the cashback offers the card offers only on all payments and not just on Paytm app usage and follows a universal one percent cashback. For a regular card, the consumer can gain reward points for all the transactions and the points vary as per the amount and the partnership the bank has with the merchant.
* The regular bank credit cards also give the benefit to the user to attain points for every purchase — even adding more funds in their Paytm Wallet is considered as a transaction which can fetch the user reward points.
* The basic difference between the Paytm credit card and a regular credit card is that the promo code to avail the cashback offers is given as a chunk for all the specified transactions once in a month but for a reward-point credit card, it is based on every transaction.
To break it down, the cashback offered on the Paytm First Card is on a monthly basis and only for specific transactions such as paying the electricity bill, recharging your prepaid phone, among others.
The transactions on the Paytm First Card are supposed to be more than Rs 10,000 after which, the user will be eligible to get a promo code to avail the cashback benefit.
Once the promo code is used, the customer will be able to use the offer only in the next month.
However, reward points are attained on every transaction made by the user. And once the user crosses the minimum points required to redeem the points, the customer can avail its benefits. The customer does not have to wait for one month to redeem the points.
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