In the 2016, the Indian government introduced a “Banknote Scrap Order” to promote the transformation of digital payments in India. As a result, Paytm has become the leading force in India’s digital payment market, with investments from Japan’s Softbank group, China’s Alibaba and Warren buffett’s Berkshire hathaway.
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It is understood that Paytm first card is similar to the Joint brand credit card, retailers and airlines provide and use the Visa network to trade. And Paytm first Card offers customers a 1% Universal unlimited rebate, which is very different from the credit card bonus points offered by most of India’s competitors.
Paytm has also worked with Citibank to establish a tool to identify potential customers’ creditworthiness, which will help customers to have credit CARDS without prior credit history.
The new credit card may help Paytm to stay ahead of its rivals in the highly competitive digital payment market, with PhonePe, another Indian digital payment app chosen by Google and walmart, being Paytm’s biggest competitor.
Citibank could use the opportunity to expand its engagement in the Indian payment sector, while Paytm could rely on the credit card product to create a new point of competition that would distinguish it from other Indian digital payment rivals.
And at this stage, India’s digital payment industry is in a fierce transition period, the digital industry is growing very rapidly. India’s digital payment industry is expected to reach $500 billion by 2020, accounting for 15% of the country’s gross national product.
In recent years, India’s payment market has not only seen the emergence of many local emerging forces, but also attracted the participation of many international giants, including Google, Amazon and Wal-mart, which have successively invested in the development of India’s payment industry. In April 2019, Facebook also announced that WhatsApp Pay would enter the Indian market.
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