Card News · 27 October 2026 · 3 min read
In short: Paytm and AU Small Finance Bank launched the Paytm AU SFB Credit Card on 21 October 2026. It is a RuPay card with no joining or annual fee, rewards of up to 2% on eligible Paytm UPI spends and 5% on Paytm Travel bookings and Paytm Gold, and up to 12 free lounge visits a year that up to four family members can use together.
Key features at a glance
| Feature | What the companies say |
|---|---|
| Network | RuPay (can be linked to UPI) |
| Joining / annual fee | Nil (lifetime-free) |
| Paytm UPI spends (groceries, cabs) | Up to 2% back |
| Paytm Travel bookings, Paytm Gold | Up to 5% back |
| Lounge access | Up to 12 visits a year, up to 4 family members, on eligible round trips booked on Paytm |
| Lounge entry | QR code in the app, no physical card needed |
| Redeeming points | Paytm Gold at ₹1 per point, vouchers or bill payments |
The card is applied for inside the Paytm app (search “Credit Card”) with KYC and the bank’s checks. AU Small Finance Bank’s deputy CEO Yogesh Jain said the card is meant to offer value “beyond traditional credit card offerings”, as reported by Elets BFSI.
What it means for you
- A RuPay credit card lets you pay by scanning UPI QR codes using credit, so rewards on everyday UPI spends are the main pull here.
- The “up to” rates are maximums. The reward caps, exclusions, interest rate and credit limits have not been published in the launch reports. Check the full terms in the app before applying.
- Family lounge access only applies to eligible round trips booked through Paytm. If you book flights elsewhere, this benefit may not help you much.
- Lifetime-free means no fee, but interest still applies if you do not pay the full bill by the due date. Paying only the minimum due gets expensive fast.
- Compare it with other no-fee and UPI cards on our Credit Card Finder or browse all credit cards.
What to watch next
Look for the detailed terms (monthly reward caps, which UPI merchant categories qualify, and lounge eligibility rules) on Paytm and AU Small Finance Bank’s official pages. Also note that a 0.4% merchant fee on some UPI payments above ₹2,000 has been put off until after Diwali; that charge falls on merchants, not on card users.
Sources
- Trade Brains: India’s first RuPay credit card with family lounge access
- Elets BFSI: Paytm, AU SFB launch lifetime-free RuPay credit card
- Business Standard: UPI MDR deferred, SBI Chairman on minimal MDR
This is a news summary for education, not investment advice. Figures are as reported on or before 27 October 2026; check official sources before making decisions.