Paytm, India’s largest digital payments company, announced on Tuesday the launch of Paytm First, a premium subscription-based rewards and loyalty program for its users. The company is offering exclusive benefits over and above the regular Paytm cashback offers while promoting further usage and increasing customer retention. The One97 Communications- owned brand is targeting three million subscriptions in the first year.
Paytm First is priced at Rs 750 with a cash back worth Rs 100 for a limited time.
“We are very excited to launch our exclusive loyalty program ‘Paytm First’ with sought after rewards and benefits spanning across video and music streaming, food and travel, shopping and lifestyle,” said Deepak Abbot, senior vice president, Paytm.
The subscribers of Paytm First can avail exclusive deals from partnered brands including Zomato Gold membership, annual memberships of Gaana, Sony Liv subscription and Eros Now.
“We are happy to have partnered with leading players from their respective verticals during the initial launch phase itself and we will continue to expand the Paytm First programme with more benefits and value to our customers,” Abbot said.
Paytm cashed in on demonitisation to become a household name in India last year. However, Indian government’s UPI-based payment made its peer-to-peer money transfer and wallet service redundant, forcing the digital payment company to pivot and diversify.
After a six months' ban, the Reserve Bank of India (RBI) allowed Paytm Payments Bank to open new accounts in January 2019. RBI said Paytm Payments Bank was in violation of the KYC procedures. Moreover, it was unable to maintain the end-of-the-day cap of Rs 100,000 imposed by RBI on payments bank accounts.
Following the footsteps of Alibaba, Paytm is betting big on O2O (online to offline) channel in India.
“We have cut cashbacks across categories. This is part of the plan to… build stronger O2O (or online-to-offline) play, where we are investing big this year,” Vijay Shekhar Sharma, founder, Paytm told media in February.
In the same month, Paytm pledged its current assets to ICICI bank to meet the working capital needs. The firm’s cap table has a couple of big marquee investors including Berkshire Hathway and Chinese fintech major Alipay. Paytm is taking inputs from Alipay to push Paytm Mall.
Paytm’s wealth management division, Paytm Money, has also introduced a “Register SIP Now, Pay Later” feature on its app in February.
Paytm Money is a direct mutual funds investment platform with around 35 Asset Management Companies on board.
Paytm has adopted an aggressive strategy for customer acquisition and to achieve the Super App status in India.