Co-branded cards continued to be the flavour of 2023, as banks and fintechs increasingly partnered to come up with innovative products in a time of shrinking rewards, reveals data compiled by BankBazaar.
““A co-branded credit card is a partnership between a bank and another company. This partnership lets the company’s customers use a credit card that’s backed by the bank. These cards show both the bank’s and the company’s logos and offer rewards or points specific to that company. By teaming up, banks can give these cards to the company’s customers and get new customers too. Banks and FinTech companies are teaming up to introduce salary cards for businesses, aiming to streamline how companies handle their employees’ expenses digitally. Banks are also rolling out joint cards with other brands to help customers handle their money smartly,” said Shetty.
Industry data gathered by Business Standard revealed that the Flipkart Axis Bank credit card has already seen more than three million customers in the first half of 2023.
For Amazon loyalists, the Amazon ICICI Credit Card is the most sought-after since it is a lifetime-free credit card. It provides 5% cashback on purchases done by Amazon Prime Members on Amazon. It offers 3% cashback on purchases done by Amazon Non-Prime Members on Amazon.
The ICICI Bank Amazon Pay card has already attracted over four million customers, boasting excellent activation rates and spending per active customer.
Among other popular co-branded cards are the IRCTC SBI card, HDFC Rupay card, HDFC Dinners ClubMiles and Regalia, RBL Bankbazaar cobrand card, and Finbooster, favoured by customers.
In 2023, credit card dues grew to Rs 2.4 trillion, as the number of credit cards outstanding crossed 94.7 million in October. n tandem, credit card spending surged to record levels, hitting Rs 1.79 trillion. Average spends per card grew to Rs 5577 from Rs 5052 last year – an increase of 10.4 per cent year on year.
2024 Expectations
“With Rupay cards now available on UPI, it is only a matter of time before other networks also get to leverage UPI. Credit cards will continue to remain the preferred instrument for larger spends, and the average spends are set to rise, with economic growth projections being revised upwards,” said Adhil Shetty, CEO of Bankbazaar.
Rewards and convenience will remain the buzzword, and cards that are conveniently available digitally will be the most sought after, the report revealed.
First Published: Jan 02 2024 | 1:38 PM IST