Ola, Paytm team up with SBI, City to launch credit cards
15 May 2019
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E-commerce firms Ola and Paytm have entered the credit card business in partnership with banks, While ridesharing platform Ola has partnered with SBI to launch ‘Ola Money SBI Credit Card’, payments firm Paytm has roped in Citibank for its credit card business.
The Ola credit card, which is powered by Visa, will offer a simplified application process, without joining fees with seamless, flexible and convenient payments, the company said in a statement.
Ola is targeting 10 million Ola Money-SBI Credit Cards to be issued by 2022.
Ola users will be able to apply, view and manage their credit card directly on the Ola app. Card users will also be offered cashbacks and rewards, instantly credited to their accounts in the form of Ola Money which can be redeemed against Ola rides, flight and hotel bookings, with lifetime validity.
“Mobility spends form a significant wallet share for users and we see a huge opportunity to transform their payments experience with this solution. With over 150 million digital-first consumers on our platform, Ola will be a catalyst in driving India’s digital economy with cutting edge payment solutions,”Bhavish Aggarwal, Co-founder and CEO of Ola, said in a statement.
Ola already offers customers a suite of digital financial offerings ranging from the Ola Money wallet to Postpaid Billing and Micro-insurance for rides taken on the Ola platform.
“Through this card, we aim to address their evolving mobility spends while providing them with maximum value and unique benefits on their travel spends, especially for cab-based commute. Ola is considered a pioneer in the mobility industry and we believe this partnership will play a key role in further strengthening our card portfolio.” Hardayal Prasad, MD & CEO, SBI Card, said.
Online payments giant Paytm has forayed into the credit card business with the launch of its 'Paytm First' card, which has been launched in partnership with Citibank. Paytm claims the card offers a 1 per cent "universal unlimited cashback" on anything you purchase, without any limits.
The contactless Paytm card will be available for online/offline purchases at a fee of Rs 500 per annum.
It will be similar to other co-branded cards (launched by retailers and airlines). But in this case, Paytm says, users will be able to win promo codes worth up to Rs10,000 - if they spend Rs10,000 within the first four months of card's issuance.
More interestingly, if your spending for the year goes beyond Rs. 50,000 for the year, Paytm says it will waive off the annual charge of Rs. 500 for the user in question.
