SBI Card partners with Paytm for tokenising cards

SBI Cards and Payment Services Ltd announced on Thursday that it has partnered with Paytm to enable cardholders to tokenise their cards on devices and make payments through the latter. 

SBI Card, the credit card arm of state-owned lender the State Bank of India (SBI), said in a regulatory filing that the product, 'SBI Card portfolio enabled on Paytm', will be available on Android NFC devices. 

Detailing the digital payments solution, the company said that only cards issued in the country are enabled on Paytm Network. However, customers may transact "using his/ her SBI Card through Paytm Network in international locations," read the statement.

Also Read: SBI Card raises Rs 650 crore through bond issue

SBI Cards and Payment Services (SBI Card) had recently raised Rs 650 crore by issuing bonds on a private placement basis. The bonds, bearing interest at 5.82 per cent, have a tenure of three years and are set for maturity on December 24, 2024.

The pure-play credit card company reported a 67 per cent jump in net profit at Rs 345 crore for the September quarter on the back of good growth in retail and corporate spends. 

SBI Card had registered a net profit of Rs 206 crore in the same period a year ago. Total income increased by 7 per cent to Rs 2,695 crore during the July-September period of FY22, from Rs 2,510 crore in Q2 FY21.

The increase is primarily due to higher income from fees and services during the quarter, SBI Card had said in a release.

Also Read: Paytm sees top-level exits across key business verticals