what are co branded credit cards ?

Co-branded credit cards for profit

Internet companies aim to leverage their user base through the introduction of co-branded credit cards for profit:

Swiggy has joined the ranks of Myntra, Paytm, Flipkart, and other companies by introducing its own credit cards, accompanied by additional discounts.

WHAT’S A CO-BRANDED CREDIT CARD?
A co-branded credit card is a collaborative product between two brands, typically a banking company and a service provider like a hotel chain or fast-food chain. Together, they offer exclusive services and benefits to cardholders, mutually benefiting both parties.
For example, consider the Snapdeal HDFC Bank Credit Card. By using this card, you can avail significant discounts during festive seasons, cashback offers, and earn reward points for shopping on the Snapdeal website. Your purchases support both Snapdeal and HDFC Bank, fulfilling the main objective of co-branding.

 

 Swiggy, the food delivery platform, plans to introduce a co-branded credit card in collaboration with HDFC Bank in the coming weeks. This move follows the footsteps of Myntra, Paytm, and Flipkart, who have used co-branded cards as a strategy to retain customers and boost revenue.
To make the card attractive to users, Swiggy, backed by Softbank, will rely on flat discounts and special offers for its hyper-local delivery services. The sources mentioned that the card might also provide additional discounts for Dineout and Swiggy's restaurant bill payment service.
While Swiggy has been working on this co-branded card partnership since early last year and has approached several banking and fintech partners, it is now looking to seize the opportunity after Zomato withdrew from the co-branded credit card market. The launch of the card is expected in the next few weeks, according to one of the sources who requested anonymity.
The co-branded credit card is likely to have Mastercard as its network partner, as per the same source.
Swiggy's spokesperson declined to comment on the matter, while HDFC Bank and Mastercard did not respond to queries from ET.
Zomato, Swiggy's competitor, entered the credit card market in 2020 through collaboration with RBL Bank. However, they decided to discontinue the service in April of this year.
Similar to other co-branded offerings, Swiggy is expected to provide additional discounts to cardholders to encourage them to remain loyal to the mobile application, one of the sources mentioned.
Furthermore, the co-branded card is anticipated to be a source of revenue for the food delivery app. Swiggy has claimed profitability in its core food delivery business. However, according to the annual report of its investor, Prosus, the company was burning approximately $45 million per month in 2022 on its overall business. Another source revealed that Swiggy has established a substantial technology team to facilitate banking integrations, with a focus on launching the product swiftly.

ECOMM ASPIRATIONS, STIFF COMPETITION

Swiggy's strategy to enhance its credit offerings coincides with its efforts to expand beyond its food tech business and quick-commerce ambitions into a larger e-commerce platform. Currently, the company is conducting pilot programs in Bengaluru for a service called 'Maxx', which offers a wide range of products including home and kitchen appliances, utensils, electronics, baby care items, and clothing.

 

Best Credit Cards Co-Branded with the Top Brands in India

Credit Cards	Co-Branded With	Offers and Benefits	Fees
Amazon Pay ICICI Bank Credit Card	Amazon	Enjoy 5% cashback on Amazon’s official website if you are a Prime member. Non-prime customers will enjoy 3% cashback on Amazon. Get 2% cashback on more than 100 Amazon Pay partner merchants. Earn 1% cash back on other purchases as the Amazon pay Balance. Earn 15% off on dining at more than 2,500 restaurants across India under the Culinary Treats Program. Get a 1% Fuel surcharge waiver on fuel transactions.	NIL
ICICI Bank HPCL Coral Credit Card	Hindustan Petroleum Corporation Limited	Get 2 PAYBACK points on every purchase of ₹100 (except fuel). Make redemption of 2000 PAYBACK points at the HPCL stations that will be equal to ₹5000. Get a cashback of 2.5% and 1% surcharge waiver at HPCL Fuel Stations. Enjoy ₹100 off on up to 2 movie tickets every month on bookings made through Bookmyshow. Have 15% off on your dining bills at over 800 restaurants across the nation under the Culinary Treat Program. Spend ₹50000 and above and waive the annual fee.	₹199 + GST
Air India SBI Platinum Card	Air India	Get 5000 Reward Points as a Welcome Gift. Enjoy an Anniversary gift of 2000 Reward Points, every year. Earn 15 Reward Points for every ₹100 spent on Air India tickets. Get 15000 Bonus Reward Points on annual spending. Have a complimentary membership of the Air India Frequent Flyer program-Flying Returns. Get International Airport Lounge Access to over 600 airport lounges with a complimentary Priority Pass Program.	₹1499 + GST
Yatra SBI Card	Yatra Official Website and Mobile Application	Enjoy a Gift of Yatra Vouchers worth Rs.8000 upon the joining fee payment as a welcome benefit. Enjoy an instant discount of Rs.1000 on the total fare for domestic flight bookings on a minimum transaction of  Rs.5,000 Get an instant discount of ₹4000 on the total fare for International Flight Bookings for a minimum transaction of ₹40000 Have a flat 20% discount on Domestic Hotel Bookings on a minimum transaction of Rs.3,000 and the maximum discount is capped at Rs.2000 on each transaction. Use the Coupon Code ‘TRAVEL’ to avail of the travel benefits mentioned above and the code can be used a maximum of 6 times a year. Enjoy access to MasterCard airport lounges in India. Earn 6 reward points on every ₹100 spent on departmental stores, grocery, dining, movies, entertainment, and international spending. Enjoy 1 reward point on every Rs.100 spent on all other categories. Enjoy a 1% fuel surcharge waiver at all petrol pumps with a maximum of Rs.100 monthly per card. Get a complimentary air accidental death cover of Rs.50 lacs on the flights booked from Yatra. Spend Rs.90000 in the current year and waive the membership fee.	₹499 + GST
IRCTC SBI Platinum Card	IRCTC – Indian Railway Catering and Tourism Corporation	Get up to 10% value back as Reward Points for booking railway tickets in AC1, AC2, and AC CC categories at irctc.co.in. Enjoy 350 activation bonus Reward Points on spends of Rs.500 and more within 45 days of the card issuance date. Earn 1 reward point for every Rs,125 spent on purchases other than fuel. Enjoy 1.8% transaction charges waiver, exclusive of GST, on railway ticket bookings on irctc.co.in. Use reward points to book free train tickets. Get a 1% fuel surcharge waiver at all petrol pumps for transactions worth Rs.500 and Rs.3,000.	₹500 + GST
Jet Privilege HDFC Bank Platinum Credit Card	Jet Airways	Enjoy 3000 Bonus InterMiles as a welcome gift. Get the first 1500 InterMiles on the first swipe.     Get 1,500 InterMiles on a spend of  Rs.50,000 and above within 90 days of issuance. Enjoy 4 InterMiles points on every Rs.150 retail spend. Flights booked from the InterMiles portal will earn you 8 InterMiles. Get 5% off on  Etihad Airways Economy tickets using the InterMiles website. Enjoy 2 complimentary lounge access per quarter available at Indian airports. You can save up to Rs.5000 on fuel transactions and air tickets.	₹1000 + GST
FBB SBI Style up Card	Fashion from Big Bazaar	Enjoy a Free Gift Voucher worth Rs.500 redeemable on fashion at any Big Bazaar/Fbb store. Enjoy Flat 10% Off on FBB merchandise. Multiply your Reward Points 10 times on all your dining expenses. Get 2.5% Value back on all spends at Big Bazaar, FBB & Food Bazaar stores. Enjoy a 1% fuel surcharge waiver on transactions worth Rs.500 – Rs.3,000 at petrol pumps.	₹499 + GST
Flipkart Axis Bank Credit Card	Flipkart	Have a Welcome and activation bonus of up to Rs.3300 on this credit card. Enjoy a Flipkart Voucher of Rs.500 after doing your first transaction from this card. Get a Cashback of 5% on Flipkart and 2GUD through this card. Get a 4% Cashback on the Cure. fit Earn a Cashback of 4% on Goibibo, PVR, Uber, Ubereats, and UrbanClap. Enjoy a Cashback of 1.5% on all the other categories Enjoy a 5% Cashback on shopping from Myntra. Earn a cashback of 4% on MakeMyTrip. Enjoy 4 Free Accesses to the Domestic Airport Lounges in India.	₹500 + GST
Axis Bank Vistara Credit Card	Vistara Airlines	Enjoy Complimentary economy class tickets and Club Vistara membership. Earn 2 Club Vistara Points for every ₹200 spent on the card. Get 1000 bonus CV points for spending ₹50000 in a year. Enjoy 1 Economy Class ticket for spending ₹1,25,000 in a year. Get Economy Class ticket on spending Rs.250000 in a year. Have complimentary lounge access at select airports in India. Get a Minimum discount of 15% on dining at more than 5000 restaurants across India under the Dining Delights program. Get coverage of $300 for Travel document loss. Have Check-in baggage delay cover of $300 Get check-in baggage loss cover of $500 There is a Lost card liability cover of ₹3 lacs.	₹1500 + GST
Apollo SBI Card	Apollo Healthcare	Get 500 reward points worth ₹500 upon the payment of the joining fee and the points will be credited 20 days after the payment of the joining fee. Enjoy a complimentary Apollo Silver Tier Membership. Enjoy 3X reward points on spending every ₹100 on all Apollo services. Enjoy an instant discount of up to 10% at select Apollo services. Spend ₹90000 or more in a year and waive off the annual fee. Enjoy a 1% fuel surcharge waiver on refilling vehicles at all petrol pumps in India with a maximum of ₹100 per month. Convert transactions of  Rs.2500 or more into easy EMIs through the Flexi pay facility.	₹499 + GST

 

 

 ADVANTAGES OF CO-BRANDED CREDIT CARDS:

·        Co-branded credit cards function similarly to regular credit cards but come with added advantages. These cards prove highly beneficial for individuals who frequently shop at malls or stores such as BigBazaar, Reliance Digital, and more.

·        From time to time, various co-branded credit cards also provide enticing deals on movie tickets as well as discounts and offers on train and flight tickets.

·        The majority of co-branded credit cards don’t have transaction fees.

        Purchasing with co-branded credit cards on an EMI basis can give you the benefit of zero finance charges.

 

   DISADVANTAGES OF A CO-BRANDED CREDIT CARD:

When considering Co-Branded Credit Cards, it is important to be aware of the disadvantages and exercise caution. These include:

           • Some co-branded credit cards may have a higher annual fee than standard credit cards.

         • Be cautious about being lured into purchasing from the brand associated with the card, even when better offers are available elsewhere.

         • Read the fine print carefully to comprehend the actual benefits provided by a co-branded credit card, as promotional material can sometimes be misleading