Paytm's Co-Branded Credit Cards Capture Growing Market with 7.5 Lakh Activations

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In the midst of a surge in disposable income and a notable increase in point-of-sale transactions on e-commerce platforms, the utilization of credit cards has witnessed a remarkable upswing. The Reserve Bank of India's data reveals that credit card expenditures have been scaling unprecedented heights each month. The insightful analysis of these evolving consumer trends has not only unveiled potential avenues but has also paved the way for tailored credit offerings.

One such story is the emergence of Paytm's co-branded credit cards, entailing enticing discounts on travel, movie tickets, and various other perks. Currently collaborating with two of India's foremost credit card issuers, HDFC Bank and SBI Card, Paytm has strategically positioned itself to reap the rewards of this burgeoning market. These partnerships have translated into upfront distribution revenue and a lifetime usage fee.

Access to these cards has been made seamless through a straightforward application process available within the Paytm app. As of June 2023, a remarkable milestone has been achieved with the activation of 7.5 Lakh credit cards, showcasing an impressive quarterly increase of 1.6 Lakh cards. Noteworthy growth has been witnessed not only in the issuance of new credit cards but also in terms of transactional volume.

This positive trajectory is anticipated to persist, propelled by strong cross-selling prospects stemming from Paytm's extensive existing user base, many of whom have previously availed loans via the platform. Vijay Shekhar Sharma, Founder and CEO, highlighted the pivotal role played by banks and non-banking financial companies (NBFCs) in facilitating accessible credit for consumers. He emphasized the substantial untapped potential