Paytm and AU Small Finance Bank (AU SFB) have rolled out a co-branded, lifetime-free RuPay credit card that rewards everyday UPI payments made through the Paytm app, in a fresh push to bring credit to India’s mobile-first consumers on the payment rail they already use most. The Paytm AU SFB Credit Card carries no joining or annual fee, according to the companies, which announced the product on 21 October.
The launch sits at the intersection of two fast-growing trends in Indian payments: RuPay credit cards linked to UPI, and co-branded cards that let fintech platforms offer credit through regulated bank partners.
Rewards built around UPI spends
Cardholders can earn up to 2% in rewards on eligible Paytm UPI transactions, such as grocery bills and cab rides, and 5% on Paytm Travel bookings and Paytm Gold purchases. Reward points can be redeemed for Paytm Gold at Rs 1 per point, or used for vouchers, bill payments and other benefits. These are maximum rates on eligible transactions, and customers are advised to check the detailed terms for caps and exclusions.
Family lounge access as the differentiator
The companies are positioning the product as India’s first credit card with family lounge access. It allows up to four family members to use airport lounges together on eligible round-trip flights booked through Paytm, with up to 12 complimentary visits a year. Entry works through a QR code in the app, so no physical card has to be shown at the lounge.
“With rewards on Paytm UPI transactions, travel, and gold purchases, along with unique benefits such as family lounge access, this Lifetime Free RuPay Credit Card is designed to deliver value beyond traditional credit card offerings,” said Yogesh Jain, Deputy CEO, AU Small Finance Bank. He added that the partnership combines AU’s credit expertise with Paytm’s digital ecosystem.
A Paytm spokesperson said the idea was that “when families travel together, the benefits of a card should work for them together.”
Why it matters for fintech
UPI now handles more than 2,400 crore transactions a month, and credit on UPI is emerging as one of the sector’s biggest growth levers. Co-branded RuPay cards give platforms such as Paytm a way to monetise high-frequency payment users through bank partners, while banks like AU SFB gain digital distribution at scale. The test, as with other UPI-linked credit products, will be whether rewards and convenience translate into responsible repeat borrowing and sustainable unit economics.
Customers can apply for the card in the Paytm app by searching for “Credit Card”, selecting the Paytm AU SFB Credit Card and completing KYC and verification.
