Fintech Cards

Review and Details of Popular Fintech Cards

Many fintech firms have come up with their own BNPL Cards and even traditional credit cards in partnership with their banking partners, which can be either a traditional bank or an NBFC. Here, we have covered the critical highlights of three of the most popular fintech cards listed above.

One Card

One Card is a traditional credit card launched by FPL Technologies. Even though this is a traditional credit card, you can easily split your spends into convenient EMIs. Some of the key features of the One Card Credit Card are as follows-

• Lifetime free credit cards are issued in partnership with banking partners, including CSB Bank, Federal Bank, Indian Bank, BOB Financial, SBM Bank, and South Indian Bank.
• You get 1 Reward Point per ₹50 spent with One Card and 5x Reward Points on the top two spend categories of the month. One Reward Point is equivalent to ₹0.10 in monetary terms.
• You are charged a lower mark-up fee of just 1% on making foreign currency transactions with the card.
• In case you default on a bill payment, the interest rate applicable is 3.49%.

Gild Credit Card

The Gild Card by SBM Bank is unlike any other credit card and offers digital gold as a reward for your spends. It is a secured card, and you need to make an FD of a minimum of ₹10,000 to get the card. You are offered a credit limit of 90% of the deposit amount and get an interest rate of 7.7% per annum. Moreover, you get up to 0.75% back as digital gold per transaction, and the card offers around 16% returns on your annual investment.

• Lifetime free card without joining and annual fees
• Instantly open FD without the need for a savings account
• The high interest rate of 7.7% p.a. on the deposit amount
• Earn 0.75% back as digital gold per transaction
• Free metal card holder
• Up to 8% returns in digital gold per year
• No income proof or credit check required

Scapia Federal Credit Card

Scapia is one of the most popular Fintech credit cards in India. This card is co-branded by Federal Bank and offers some of the most lucrative benefits on travel bookings. Not only is this card offered as lifetime free, but there are zero forex fees associated with it. Customers can easily use this card at merchants across the globe (200 countries). Here is a quick look at some of the features of the Scapia Federal Credit Card.

• 48 days of no interest period. 3.49% monthly interest is charged after the zero-interest period ends.
• 10% Scapia coins on all offline and online purchases.
• Accelerated 20% Scapia coins on all travel bookings (airlines/hotels) made on the Scapia app.
• 5 Scapia coins = ₹1.
• Unlimited free domestic lounge access is provided.

Bajaj Finserv RBL Bank Binge SuperCard

RBL Bank, along with Bajaj Finserv, has come up with its own innovative Fintech credit card. The Bajaj Finserv RBL Bank Binge SuperCard can be availed at a joining fee of ₹999. With this card, you shall earn 12 Reward Points on all online spends, except for online purchases made on education, insurance, utilities, and rent payments. There is a maximum reward point earning cap of 800 Reward Points per month. Movie lovers shall especially like this card since it offers BOGO on movie bookings once a month. Complimentary lounge access is also provided with the Bajaj Finserv RBL Bank Binge SuperCard.

Slice Super Card

This is a BNPL card by fintech startup Slice launched in 2019 in collaboration with their banking partner, SBM Bank. The card gets its name “Slice” from the fact that the monthly spends on the card can be split (sliced) into three equal installments to be paid over the next three months. Some of the key features of the Slice Card are as follows:

• The total spends on the card can be split into interest-free EMIs to be paid over the next three months.
• You can also split your card bill with your friends.
• You get a cashback of up to 2% on all transactions made with your Slice Super Card. The cashback is credited as monies (Slice’s equivalent of Reward Points), which can be redeemed against cashback. The rate of redemption depends upon the number of monies in your account at the time of redemption.
• Easy application process via app/website and easy approval as no credit score is required.
• The card is issued on the Visa platform and is therefore accepted by all merchants that accept Visa credit/debit cards.

UNI Card

The UNI Card or UNI Pay 1/3rd Card is another BNPL card. UNI Card is very similar to the Slice Super Card as it also allows you to split your monthly spends into three equal installments that can be paid over the next three months. One feature that differentiates the UNI Card from the Slice Card is that the Slice Card earns you a cashback of up to 2% (not flat 2%- cashback depends upon the number of monies in your account at the time of redemption as cashback), you get flat 1% cashback on UNI Card if you pay off your entire billed amount in a single installment (no cashback is earned if the bill is split into EMIs). Some of the key features of the UNI Card are as follows-

• UNI Card is launched in collaboration with SBM Bank.
• The card is issued on the Visa payment network and is accepted by 99.99% of the merchants- both online and offline- that accept Visa credit cards.
• You can pay your UNI Card bill in three interest-free installments, to be paid over the next three months.
• If you pay your entire bill by the payment due date in a single installment, you get a cashback of 1% of the total billed amount. No cashback benefit is applicable if the bill is split into installments.

How to Choose the Right Fintech Card?

• When choosing a Fintech Card, the very first thing to check is the reward rate. If you spend a lot, then going with a card that offers a higher reward rate or instant cashback would be a wise choice.
• The next important thing to check in a Fintech card is the interest charges applicable to the due amount. It is advisable to settle the bills on time, but in case you default on a payment, then you would face heavy charges on the due amount. Therefore, go with a card that carries lower finance charges.
• Also, look for other benefits provided with the card and compare them with other card features. If you are getting the proper benefits from the right card, then go for the same.

Why Fintech Cards Are Gaining Popularity?

Fintech Cards have changed the credit card industry by bringing new and innovative technologies into the world of payment options. These cards are becoming the 1st payment choice for the following reasons:

• Quick Onboarding: The application process for Fintech Cards is far better and quicker compared to traditional credit cards. Moreover, these cards require very few documents, and sometimes, they don’t even check the credit scores of applicants.
• Great Rewards: The Fintech Cards offer cashback or points on every transaction you make. Moreover, some cards provide great rewards and offers on famous partner merchants that bring you great deals.
• Building Credit Score: Fintech Cards are the best way to build a good credit score or to start the credit card journey. Even if you have a low credit score, you can make it better with these Fintech cards.

Difference Between Credit Cards and BNPL Cards

Both credit cards and BNPL cards are financial tools that allow you to make purchases against a line of credit granted to you by the issuer. However, there are two critical differences between BNPL cards and credit cards- A BNPL card is technically issued against a line of credit granted to you as a personal loan by the issuer. A credit card, on the other hand, is a separate category of financial product in itself. Another difference between a BNPL Card and a credit card is that a BNPL Card allows you to pay off your billed amount in interest-free installments, which is not the case with traditional credit cards. The following table summarises the key differences between a credit card and a BNPL Card-

Bottom Line

Fintech Cards are far different from regular credit cards as these are not issued by commercial banks. Moreover, the Fintech cards are just Buy Now Pay Later cards, and they do not even require a high credit score. These cards operate in very easy and straightforward terms. The onboarding process for the Fintech cards is also quick and easy. The Fintech cards are issued with a fixed credit line based on your profile and offer you discounts on merchants and rewards for transactions done with them.

Fintech cards like One Card, Scapia, and UNI Card are suitable for students or new to credit young professionals who need a line of credit for their monthly expenses but are not eligible for a traditional credit card. Otherwise, if you qualify for even an entry-level credit card, it is a better idea to go for a conventional credit card, as traditional credit cards not only offer a higher reward rate but also allow you to withdraw cash from ATMs.

A reason to opt for a BNPL card is that BNPL cards will enable you to split your bill into interest-free installments that you can pay over the next few months. If you are someone who likes to make purchases on EMIs, the Buy Now Pay Later model might suit you.

That being said, for most of us, a traditional credit card is, any day, a better pick.