Paytm AU SFB Credit Card launches: lifetime free RuPay, up to 2% on Paytm UPI, family lounge visits

AU Small Finance Bank and Paytm announced the Paytm AU SFB Credit Card on 21 October 2026. It is a lifetime-free RuPay card, which means it works for credit card payments over UPI, and its headline perk is airport lounge access for the whole family. The core terms below come from AU's own press release; the finer print comes from Paytm's card page and is labelled as such.

What the bank confirms

The fine print, per Paytm's card page

Paytm's own page for the card adds the conditions the press release leaves out. These are the ones that change the maths:

• "Up to 2%" has a ceiling per payment. 2% applies on Paytm UPI payments up to ₹2,000; above that the rate drops to 1%. UPI through other apps earns 0.25%.
• Everything else earns 1%, including Paytm recharges and bills paid in the Paytm app.
• Monthly caps. 1,000 points a month each for UPI, for Paytm and e-commerce, and for offline spends, so up to 3,000 points a month in total.
• The lounge benefit has a trigger. It needs a round-trip flight booked through the Paytm app for ₹5,000 or more, paid with this card. You cannot simply walk in on any trip.
• A long exclusion list. No rewards on wallet loads, international transactions, EMI, rent, insurance, education, government payments, fuel, or utility bills paid outside Paytm.

One contradiction to check before you count on the 5% rate: Paytm's page lists 5% on "Paytm Gold purchases" but also excludes "jewellery and gold purchases" from rewards. Until Paytm clarifies, assume the Gold rate may not apply.

Who it suits

This is a card for someone who already pays through Paytm UPI and books domestic flights on Paytm. On ₹2,000 Paytm UPI payments the 2% works out to ₹40 back each, and the 1,000-point monthly UPI cap means the 2% stops paying after roughly ₹50,000 of UPI spend a month. The family lounge benefit is genuinely unusual: most cards that include lounge access cover only the cardholder.

It is a weak choice for anyone who travels abroad (no rewards on international spends) or wants a single card for rent, fuel or insurance.

Which CardPolo cards are affected

None. The Paytm AU SFB card is new and not yet in the CardPolo catalog, so this post links no card page. The AU cards we do track, such as the LIT and Zenith, are unchanged by this launch.

Using UPI for most of your spending and wondering which credit card pays best for it? Get a ranked shortlist from Polo Match, or ask Polo Brain which card to tap for your next payment.