Paytm SBI Credit Card Explained: Who Should Get It & Why?

Okay, so we know that credit cards are everywhere. In the last decade (2014-2024), there has been an over 100% rise in credit card penetration in India, and it is projected that by FY2028-29, India will have over 20 crore credit cards. 

However, it's not as cool as it sounds. All these credit cards seem to offer the same thing: "Use me, and I'll give you points, cashback, rewards, and maybe even a complimentary e-voucher or additional discounts." 

Take the Paytm SBI credit card, for example—it offers cashback on Paytm Mall, rewards on movie bookings, travel perks, and cashback. But the question that comes to mind is, "Is this another one of those cards that promises the moon but delivers a lukewarm coffee instead?"

We get it. No one has time for more empty promises. That's why we've done the homework, so you don't have to.
Let's see if the Paytm SBI Credit Card deserves your attention!

Table of Contents

• What is the Paytm SBI Credit Card?
• Paytm SBI Credit Card Benefits
• Paytm SBI Credit Card Charges 
• How to Apply for Paytm SBI Credit Card?
• Pros & Cons of Paytm SBI Credit Card
• Final Verdict: Is Paytm SBI Credit Card Worth It?

What is the Paytm SBI Credit Card?

The Paytm SBI Credit Card is a co-branded card from Paytm and SBI. It's a visa-powered card, so you can use it almost anywhere in the world and depending on your style, you can pick from two variants:

1. Paytm SBI Credit Card: The go-to, no-fuss option for the everyday spender
2. Paytm SBI Select Credit Card: The extra option with more perks

In this article, we'll delve into the features of the Paytm SBI Credit Card and weigh its benefits against the fees.

Paytm SBI Credit Card Benefits

Wondering what's in it for you with the Paytm SBI Credit Card? Let's run through its benefits and features so you can see how you'll earn rewards:

1. Cashback

• 3% cashback on Paytm Mall purchases, movie tickets, and travel bookings via the Paytm app
• 2% cashback on all purchases made through the Paytm App.
• 1% cashback on every other purchase made at lakhs of online and offline stores worldwide.

Example:

• Spend ₹5,000 on Paytm Mall = ₹150 cashback
• Spend ₹2,000 on bill payments = ₹40 cashback
• Spend ₹10,000 on shopping = ₹100 cashback
• Total cashback: ₹290/month (That's over ₹3,500 per year.)

Note: Starting July 2024, the cashback feature was replaced with reward points (but don't worry, it's still the same value: 1 point = ₹1). So whether you're spending on groceries or on a shopping spree, you're getting rewarded. The best part? QR code transactions made via Paytm also fall under the 1% cashback category. 🤩

2. Free Paytm First membership

When you activate your Paytm SBI Credit Card and make your first transaction, you'll unlock a Paytm First membership (worth ₹750). Then, you can enjoy exclusive privileges of up to ₹50,000. 
And if you spend ₹1 lakh annually on the card, you'll get a free renewal for another year. 

3. Cyber fraud insurance

Scared to use credit cards because of online frauds and scams? Don't worry—the Paytm SBI Credit Card has you covered with ₹1 lakh cyber fraud insurance. If your card details are ever used fraudulently online, you're protected. Here's what's covered:

• Unauthorised online transactions made with your card.
• Misuse of your card details for fraudulent activities.
• Protection against online scams.

Note: You won't be covered if you're careless (like sharing your PIN/OTP with the wrong people). 

4. Fuel surcharge waiver

The Paytm SBI credit card offers a 1% fuel surcharge waiver of upto ₹100 per cycle on fuel purchases between ₹500 and ₹3,000. That means you might end up saving up to ₹1,200 every year.

5. Flexipay for EMI conversion

We all love a good EMI option, especially when we're making a big purchase. With Flexipay, you can convert any purchase above ₹2,500 into easy, bite-sized monthly payments.

With these features, the Paytm SBI Credit Card offers a mix of rewards, perks, and security, ensuring that every swipe makes your wallet a little heavier instead of lighter.

Paytm SBI Credit Card Charges

Every card has its fees, and the Paytm SBI Credit Card is no different. 

Fee type	Charges
Joining fees	₹499
Annual fees	₹499
Add-on fees	Nil
Interest rate	Up to 3.75% per month
Cash advance fees	2.5% or ₹500, whichever is higher
Cash payment fees	₹250 + taxes
Interest-free grace period	20 to 50 days
Late payment fees	₹0 if amount due is ₹0 - ₹500 ₹400 if amount due is ₹500 - ₹1,000 ₹750 if amount due is ₹1,000 - ₹10,000 ₹950 if amount due is ₹10,000 - ₹25,000 ₹1,100 if amount due is ₹25,000 - ₹50,000 ₹1,300 if amount due is above ₹50,000
Foreign currency fees	3.5% of transaction
Over-limit fees	2.5% of the over-limit amount or ₹600, whichever is higher
Rewards redemption fees	₹99
Card replacement fees	₹100 - ₹250
Cheque payment fees	₹100
Statement retrieval fees	₹100 per statement (for statements older than 2 months)
Credit limit increase fees	₹200 per successful increase in credit limit

These fees are pretty standard for a credit card, and the joining & renewal fees are quite low compared to other cards out there. However, the cash payment fees and foreign currency transaction fees, are a little higher than some other cards. Keep in mind that late payment fees can stack up, so it's a good idea to stay on top of your payments to avoid unnecessary charges.

How to Apply for Paytm SBI Credit Card?

Applying for the Paytm SBI Credit Card is a breeze. Here's a simple step-by-step guide on how you can apply and get started:
Step 1: Head over to the official SBI Card website. On the homepage, locate the “Credit Cards” section, where you'll find a range of options, including the Paytm SBI Credit Card.
Step 2: Browse through the different card options and select the Paytm SBI Credit Card. 
Step 3: Once you've found the card, click on the "Apply Now" button. This will redirect you to the e-apply form or online application form.
Step 4: Complete the online application form with your personal, professional, and financial details and submit your application. 
Step 5: If your application is approved, you will get a verification call from the SBI Card team. They will confirm your details and complete the verification process.

Once your verification is complete, your Paytm SBI Credit Card will be issued and sent to your address. That's it! Easy, fast, and simple.

Pros & Cons of Paytm SBI Credit Card

The Paytm SBI Credit Card comes with many benefits, especially for those who love shopping and use Paytm. However, like any credit card, it's not all rainbows and cashback. Here's a list of the pros and cons of the card so you can decide if it fits your lifestyle:

Pros 

1. Earn 3% cashback on Paytm Mall, 2% on other Paytm App purchases, and 1% on other transactions—ideal for those who regularly shop on Paytm.
2. Activate the card and get Paytm First membership with exclusive offers, discounts, and perks.
3. With Flexipay, convert purchases over ₹2,500 into easy EMIs, giving you flexibility in payments.
4. Add family members without any extra cost, making it affordable for household use.

Cons 

1. If you don't use Paytm much, the cashback and benefits won't be as impactful.
2. No airport lounge access is offered.
3. Up to 3.75% per month in interest can get expensive if you carry a balance.
4. Cash advances cost 2.5% or ₹500 (whichever is higher), making it costly if you need quick cash.
5. A 3.5% fees on international transactions can add up if you travel or shop abroad often.

The Paytm SBI Credit Card works best if you frequently shop on Paytm Mall or use the Paytm app, thanks to its cashback benefits. However, if you're looking for lounge access, lower foreign transaction fees, or broader rewards, this card may fall short.

Final Verdict: Is Paytm SBI Credit Card Worth It?

Well, if you're someone who lives and breathes Paytm, then this card is pretty much "IT" for you. With up to 3% cashback on Paytm Mall, movies, and travel, plus a complimentary Paytm First membership, it's packed with perks. It also offers a ₹1 lakh cyber fraud insurance. 

But before you get too excited, it's not all sunshine and rainbows. Sure, cashback may seem great, but only for Paytm users. The cashback for any other spending is limited to 1%. Plus, you only get a 1% fuel surcharge waiver with terms, conditions and limitations applied. 

So, who should get the Paytm SBI credit card?

• Paytm users: Great for people who shop on Paytm Mall, book travel, or pay bills using Paytm.
• Online shoppers: Ideal for those who shop online often, with cashback and global acceptance.
• Budget-conscious people: Low annual fee and no extra charges for add-on cards.

Who wouldn't benefit from this card: 

• Non-Paytm users: If you don't use Paytm much, you won't benefit from the rewards.
• Offline shoppers: Limited rewards for shopping at physical stores (only 1%).
• Balance carriers: High interest rates (up to 42% annually) if you carry a balance.
• Frequent travellers: The 3.5% foreign transaction fee could make it costly for international purchases.
• People seeking varied advantages: If you want a card with a wider range of perks (like dining, lifestyle rewards, or travel benefits), this might not be the best option.
• Lounge access seekers: If you enjoy airport lounge access, this card doesn't offer that perk.

By now, you probably have a good idea of whether you should be interested in the Paytm SBI Credit Card or not. If you check all the boxes in the "who should get this card" list and think that it's affordable, then great! It could be a perfect match for your spending habits. The cashback rewards on Paytm purchases, Paytm First Membership, and global acceptance can certainly make your life a little easier and more rewarding. 

However, if you don't find it appealing, don't worry– it's not the end of the world. There's a perfect card out there waiting for you.

If this card doesn't seem like the right fit, Finology Select can help you find one that is. With a collection of over 90 of the best credit card options, you can explore a variety of cards, compare their features, fees, pros, and cons, and easily discover one that suits your financial needs and lifestyle.