As Indian consumers are slowly adapting to digital payments, particularly after demonetization in 2016, fintech startups in the country have come up with a variety of lending products, including instant personal loans and BNPL (Buy Now Pay Later) services like Paytm Postpaid, Amazon Pay Later, Ola Money Postpaid, LazyPay and many more. Some fintechs have taken the BNPL model to a whole different level by offering physical payment cards against a line of credit that works very much like credit cards for almost all practical purposes. As most of these companies are not registered NBFCs, these BNPL cards are issued in collaboration with a financial partner such as a bank or NBFC. Just like credit cards, BNPL cards are also issued on payment networks like Visa/MasterCard and can be used at any retail store (online or offline) that accepts Visa/MasterCard credit/debit cards. Moreover, you even earn Reward Points/cashback on these BNPL cards.
The main highlighting feature of these BNPL cards that differentiates them from traditional credit cards is that they allow you to split your monthly spends into instalments that are to be paid over the next few months. Some of the popular fintech BNPL cards are Slice Super Card and UNI Card.
While some startups have launched BNPL cards, others have come up with a traditional credit card in collaboration with a bank/NBFC. One such credit card is One Card. Another new offering in the fintech space is the Gild Credit Card by SMB Bank which offers you digital gold as returns on your spends. It is an FD-backed secured card that offers around 7.7% interest per annum and almost 16% returns on your investments per year. In this article, we will discuss the features and benefits of three of the most popular fintech cards and also learn the key differences between traditional credit cards and these new-age BNPL cards-
List of Best Fintech Credit Cards in India 2023
Though there is not a very long list of fintech credit cards available in the Indian market as of now, not everyone is aware of all these cards and their features. Having similar features to credit cards, these cards work on the concept of Buy Now Pay Later. In this article, you can find the list of best Fintech Credit Cards in India along with their detailed features and all other necessary information:
Best Suited For
Reward Points |
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 key highlights of three of the most popular fintech cards listed above. To read a detailed review of any of the cards, click/tap on the “More Info” button below the card you are interested to know about in the list above.
Slice Super Card
Slice Super Card, as you have seen, 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 under-
- 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.
- Slice Card can not be used for cash withdrawals at ATMs or for making international transactions.
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 Rs. 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
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 UNI Card from Slice Card is, while 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 was launched in 2021 in collaboration with RBL Bank, SBM Bank and LiquidLoans (NBFC partner).
- 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/debit 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 instalment, you get a cashback of 1% of the total billed amount. No cashback benefit is applicable if the bill is split into installments.
- Just the Slice Super Card, the UNI Card also can not be used for making international transactions or for ATM cash withdrawals.
One Card is a traditional credit card launched in March 2019 by FPL Technologies. Since it is a credit card, unlike BNPL cards like Slice Card and UNI card, you can not split your One Card bill into interest-free EMIs. Some of the key features of the One Card Credit Card are as follows-
- Lifetime free credit cards issued in partnership with banking partners, including IDFC FIRST Bank, Federal Bank, BOB Financial, SBM Bank and South Indian Bank.
- You get 1 Reward Point per Rs. 50 spent with One Card and 5x Reward Points on the top two spend categories of the month. One Reward Point is equivalent to Rs. 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 just 2.5%- lower than the industry standard of 3.5%.
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 very next important thing to check in a Fintech card is the interest charges applicable on the due amount. Well is it 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 right benefits from the right card then go for the same.
How Fintech Cards are becoming the next payment option?
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 because of following reasons:
- Quick Onboarding: The application process of Fintech Cards is far better and quick compared to traditional credit cards. Moreover, these cards require very few documents and sometimes they don’t even check the credit score of applicants.
- Great Rewards: The Fintech Cards offer cashback or points on every transaction you make. Moreover, some cards provide great rewards and offer 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 fitnech cards.
How do Fintech Cards Work?
Fintech Cards are far different from normal 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 good credit score. These cards operate in very easy and simple 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.
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 key 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-
|Credit Cards||BNPL Cards|
|A separate category of financial product as per RBI norms.||Essentially a line of credit granted against a personal loan- very similar to products like Paytm Postpaid, Ola Money Postpaid and Amazon Pay Later.|
|You have to pay the entire billed amount by the payment due date (usually 15 to 20 days after the end of the payment cycle), otherwise, interest is payable on the due amount.||BNPL cards allow you to split your bill into interest-free EMIs, to be paid over the next few months.|
|Usually offer a higher reward rate.||The reward rate is lower than traditional credit cards in most cases.|
|Allow cash withdrawals from ATMs.||Cash withdrawals from ATMs is not allowed.|
|Can be used for making international transactions.||Can not be used for making international transactions.|
|Usually have comparatively stricter eligibility criteria (except secured credit cards that are issued against a fixed deposit).||Not so strict eligibility criteria- sometimes.|
BNPL cards like Slice Super Card 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 are eligible for even an entry-level credit card, it is a better idea to go for a traditional credit card as traditional credit cards not only offer a higher reward rate but also allow you to make international transactions and withdraw cash from ATMs. Another reason why you might want to opt for a BNPL card is that BNPL cards allow you to split your bill into interest-free installments that you can pay over the next few months. So, 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.
No BNPL (Buy Now Pay Later) Cards are not credit cards. These cards essentially grant you a line of credit against a personal loan which you can use for making purchases at online/offline stores.
BNPL cards are accepted by all domestic merchants that accept credit/debit cards issued on the payment network on which the BNPL card is issued. For example, as Slice Super Card and UNI Card are issued on the Visa network, they are accepted by all the domestic merchants that accept Visa credit/debit cards.
No, BNPL Cards like Slice Card and UNI Card can not be used for making international transactions. These cards are accepted by domestic online/offline merchants only.
No, BNPL Cards like Slice Super Card and UNI Pay 1/3rd card can not be used for withdrawing cash from ATMs.
No, One Card is a traditional credit card. One Card is issued by FPL Technologies Pvt. Ltd. in collaboration with its banking partners IDFC FIRST Bank, Federal Bank, BOB Financial, SBM Bank and South Indian Bank.
All of the three aforementioned fintech cards- Slice Super Card, UNI Pay 1/3rd Card and One Card are lifetime free- no annual membership fee applicable.
You get a cashback of up to 2% (not flat 2%) on all spends on Slice Super Card. On UNI Pay 1/3rd Card, you get a cashback of 1% only if you payoff all your billed amount in a single installment.
The best Fintech Companies that offers Fintech cards are: Uniorbit Technologies, Slice, and FPL Technologies.