Digital wallets from Paytm and Mobikwik have evolved a lot over the past 10 years. Launched as an alternative to credit cards, their usage has dwindled over time. Thanks to the curbs put by credit card companies on rewards for wallet transactions. It is no surprise that people want rewards when doing transactions. This is where digital wallets lost ground. Paytm took the first initiative of changing gears. It launched co-branded credit cards with Citibank and SBI Cards. But, these did not get great customer feedback. Now, Paytm has launched a co-branded credit card with HDFC Bank. Will this time be different? In this article, we review the Paytm HDFC Bank credit card variants and their benefits.
Variants
- Paytm HDFC Bank Mobile Credit Card – Digital only (on mobile)
- Paytm HDFC Bank Credit Card
- Paytm HDFC Bank Select Credit Card – Highest variant
The card designs look a bit bland to me. They could have definitely had more attractive designs. 🙂
| PAYTM HDFC BANK MOBILE CREDIT CARD – DIGITAL ONLY | PAYTM HDFC BANK CREDIT CARD | PAYTM HDFC BANK SELECT CREDIT CARD | |
|---|---|---|---|
| Membership Fee | Rs 29 per month | Rs 49 per month | Rs 1000 per year |
| Fee Waiver on Spends | Rs 2500 per month | Rs 5000 per month | Rs 1.5 Lakhs per year |
Variants and Benefits
| PAYTM HDFC BANK MOBILE CREDIT CARD | PAYTM HDFC BANK CREDIT CARD | PAYTM HDFC BANK SELECT CREDIT CARD | |
|---|---|---|---|
| Mall, Movies & Mini app | 2% Cashback | 3% Cashback | 5% Cashback |
| Other Paytm Spends | 1% Cashback | 2% Cashback | 2% Cashback |
| All other spends | 0.5% Cashback | 1% Cashback | 1% Cashback |
| Milestone Benefits | Get Paytm HDFC Bank Credit Card benefits by spending INR 10,000 in 3 consecutive months | 1% additional cashback upon spending Rs 10000 every month capped at Rs 100 per month | Rs 500 worth Gift Vouchers on spending Rs 50000 in a calendar quarter |
| Complimentary Paytm First Membership | Not Available | Yes | Yes |
| Complimentary Domestic Lounge Visits | Not Available | Not Available | 8 Visits per year |
Excluded Transactions for Rewards
Below transactions will not get any rewards on the IDFC First Bank credit cards:
x Wallet Spends – This is a benefit I was looking forward to considering Paytm started off as a wallet. There should have been at least some monthly limit for free wallet loads into Paytm.
x Fuel Spends
x EMI transactions
Rewards Redemption
The cashback will be issued as Paytm gift vouchers. There is no option for a statement credit.
My Thought
This is Paytm’s third attempt at making a credit card. HDFC Bank has a policy of issuing only one credit card to a customer. If this continues to be in place, I do not expect much traction for this card.
The second drawback for these cards is the reward rate. HDFC Bank Millennia offers better rewards than the Select variant over here. Plus, these Paytm co-branded cards are not eligible for the amazing Smartbuy program.
Considering these points, it is better to not opt for the Paytm co-branded cards from HDFC Bank. We can instead go for any of the other HDFC Bank credit cards and upgrade to a better card later on.
