Should you apply for the Paytm SBI credit card?
Paytm SBI Card has introduced two different versions, but both have higher annual fees and fewer perks than the original. Paytm SBI card Select and Paytm SBI card are the two credit cards recently released due to a partnership between Paytm and SBI Card.
Customers who do most of their shopping online, particularly those living in tier-2 and tier-3 cities, are the primary target audience for these cards. You may submit your application for the card via the Paytm mobile app. The Paytm SBI card Select has an annual fee of Rs 1499, while the regular Paytm SBI card has a yearly fee of Rs 499. Is it worthwhile to apply for these cards, and what are their requirements?
What exactly is the deal?
Ashwini Kumar Tewari, the Managing Director and Chief Executive Officer of SBI Card, says that once you apply for one of these cards through the Paytm app, SBI will determine your credit limit “based on the transaction history on Paytm.” Both of these cards are physical. The annual fee is waived if you spend at least Rs 2 lakh in a calendar year using your Paytm SBI Card Select. Paytm SBI Cardholders do not qualify for a fee waiver of any kind.
Both cards provide cashback on purchases made at Paytm Mall and on the Paytm app, where users can book tickets for movies and travel (the online store). You may also be eligible for a modest cashback reward if you shop online or in physical stores. According to a spokesperson for Paytm, “You can also block or unblock the card through a single click on both the Paytm app and the SBI Card app.” SBI Card provided this information.
What is effective?
If you never use any other method of paying for your utilities, transportation, or entertainment than the Paytm app, you are the ideal candidate for one of these credit cards. It provides up to 5 per cent cash back on transactions on the Paytm app using the card.
The card has several protective features. You have the option to disable the capability of your cards to make contactless payments. In addition, they provide a cyber fraud insurance cover of up to Rs. 2 lakh with the Paytm SBI Card Select and up to Rs. 1 lakh with the Paytm SBI Card.
What needs to be fixed?
There is no significant advantage to using these credit cards outside the Paytm app or mall. “When compared to HDFC Bank’s Millennia credit card, it offers 5% cash back on big e-commerce websites like Amazon and Flipkart,” says Tushar Jain, a personal finance blogger at www.jaintushar.com. The Millennia card from HDFC Bank does not tie clients to a single platform to maximise cashback benefits.
When we compare the cashback offer of Paytm SBI Card Select and Paytm SBI Card to those of other co-branded cards such as Flipkart Axis Bank card and Amazon Pay ICICI Bank card, the cashback offer seems to be in the same ballpark. You earn 5% and 3% cashback on Paytm SBI Card Select and Paytm SBI Card, respectively, when you buy movie and travel tickets on the Paytm app and purchase at Paytm Mall.
Another spending on the Paytm app using these cards will earn you 2% cashback while spending elsewhere will earn you 1%. “However, co-branded cards of Flipkart and Amazon will continue to witness more demand as consumers choose to purchase on these famous e-commerce websites rather than Paytm,” says a representative for www.creditcardz.in.
“While consumers may be spending more on various e-commerce sites, customers are also spending on the Paytm platform.” Starting with college fees, monthly energy payments, purchasing travel tickets, paying rent, insurance premiums, and so on, the card may also be used offline at merchant outlets to earn a flat 2% cashback. As a result, the possibilities for using our card are many,” adds a Paytm spokeswoman.
These cards are only helpful if you use the Paytm app primarily for frequent transactions. Both varieties of the Paytm SBI Card have higher yearly fees and fewer advantages (see table). In addition, if you want the annual fees removed, you must spend more using the Paytm SBI Card.
“The yearly fee waiver after spending Rs two lakh is too much for a card in this market,” argues Jain. The HDFC Bank Millennia Credit Card waives the annual charge if you spend at least Rs 30,000 within the first 90 days of receiving the card or pay at least Rs 1 lakh during the year.
How can a consumer get their money back?
Paytm SBI Cards work like other Amazon Pay ICICI Bank co-branded cards in terms of cashback. Both Paytm SBI Card types provide cashback in the form of Paytm gift cards. These gift cards may be used for any payment on the Paytm app. Similarly, with Amazon Pay ICICI Bank card, clients’ Amazon Pay wallets are rewarded with cashback.
A consumer may redeem the amount from her Amazon Pay wallet on her next purchase (she can spend it on anything) or while paying utility bills via Amazon. Customers with a Flipkart Axis Bank card will see their credit card payment decreased with a cashback amount on their statement.
Moneycontrol’s viewpoint
Paytm SBI cards are linked to the Paytm app. They restrict your options since these cards want you to spend more money via the Paytm system. Paytm SBI cards are related to the Paytm app. You may skip these cards. They are insignificant compared to rivals.
Conclusion
In short, the Paytm SBI Credit Card is an entry-level low-fee card designed for Paytm users who purchase regularly. You may receive a lot of money on movies, travel, Paytm mall purchases, and a flat 1% cashback on anything else. Credit cards are ideal for earning cashback on online purchases.
