🚀India crossed 110 million credit cards in July 2025
Today, co-branded cards are rewriting how Indians shop, save, and stay loyal.
Let’s unpack the story🧵👇
Today, co-branded cards are rewriting how Indians shop, save, and stay loyal.
Let’s unpack the story🧵👇
🏦 What Are Co-Branded Cards?
A co-branded credit card (CBCC) is built through a three-way partnership:
🏦Bank (issues & manages credit)
🏬Brand (retailer, airline, telecom, etc.)
🌎Network (Visa, Mastercard, RuPay).
The result: a card that works almost everywhere but gives extra rewards inside the brand’s world.
A co-branded credit card (CBCC) is built through a three-way partnership:
🏦Bank (issues & manages credit)
🏬Brand (retailer, airline, telecom, etc.)
🌎Network (Visa, Mastercard, RuPay).
The result: a card that works almost everywhere but gives extra rewards inside the brand’s world.
📈 Why They’re Exploding
The timing couldn’t be better:
•Spending hit ₹21.16 lakh crore in 2025 up 15% from ₹18.32 lakh crore in FY24.
•CBCCs now makes up a lion share of the incremental cards issued.
The fuel? Digital commerce, UPI adoption, and millions of new-to-credit consumers.
The timing couldn’t be better:
•Spending hit ₹21.16 lakh crore in 2025 up 15% from ₹18.32 lakh crore in FY24.
•CBCCs now makes up a lion share of the incremental cards issued.
The fuel? Digital commerce, UPI adoption, and millions of new-to-credit consumers.
💳 Loyalty, Reimagined
Loyalty today is less about feelings, more about practical value — cashback, discounts, and perks.
Three cards show how differently this works:
•Amazon Pay ICICI → Cashback credited to Amazon Pay balance, pushing you to keep spending on Amazon.
•EazyDiner IndusInd → Extra discounts at restaurants + free membership for food lovers.
•Airtel Axis Bank → Cashback on mobile, broadband and utility bills.
Loyalty today is less about feelings, more about practical value — cashback, discounts, and perks.
Three cards show how differently this works:
•Amazon Pay ICICI → Cashback credited to Amazon Pay balance, pushing you to keep spending on Amazon.
•EazyDiner IndusInd → Extra discounts at restaurants + free membership for food lovers.
•Airtel Axis Bank → Cashback on mobile, broadband and utility bills.
📜 The Rules of the Game
The RBI has stepped in with clear guardrails:
•Brands can’t access customer-level transaction data.
•The bank’s name must be prominent.
This keeps the ecosystem transparent and balanced.
The RBI has stepped in with clear guardrails:
•Brands can’t access customer-level transaction data.
•The bank’s name must be prominent.
This keeps the ecosystem transparent and balanced.
🏦 How The Banks Benefit?
1. Interchange Fees:
Every swipe earns banks a cut (2–3%) as interchange income.
2. Interest on Revolvers:
If users don’t pay in full, banks charge 36–42% APR the biggest profit driver.
3. Fees & Penalties:
Late fees, forex charges, and service fees add extra revenue.
4. Lower Acquisition Cost:
Banks acquire customers through the brand’s base, cutting expensive marketing costs.
5. Cross-Selling:
Cards open doors to pitch loans, insurance, investments, and premium banking products.
1. Interchange Fees:
Every swipe earns banks a cut (2–3%) as interchange income.
2. Interest on Revolvers:
If users don’t pay in full, banks charge 36–42% APR the biggest profit driver.
3. Fees & Penalties:
Late fees, forex charges, and service fees add extra revenue.
4. Lower Acquisition Cost:
Banks acquire customers through the brand’s base, cutting expensive marketing costs.
5. Cross-Selling:
Cards open doors to pitch loans, insurance, investments, and premium banking products.
🛍️ What About The Merchants?
1. Share of Revenue:
They get a cut from annual fees, interchange, or spending commissions.
2. Higher Spending:
Cardholders spend more with the partner brand.
3. Stronger Loyalty:
Cashback and perks keep customers tied to the brand ecosystem.
4. Useful Insights:
Even without individual data, aggregated patterns guide offers and campaigns.
5. Everyday Visibility:
The brand’s logo in a customer’s wallet = constant marketing.
1. Share of Revenue:
They get a cut from annual fees, interchange, or spending commissions.
2. Higher Spending:
Cardholders spend more with the partner brand.
3. Stronger Loyalty:
Cashback and perks keep customers tied to the brand ecosystem.
4. Useful Insights:
Even without individual data, aggregated patterns guide offers and campaigns.
5. Everyday Visibility:
The brand’s logo in a customer’s wallet = constant marketing.
📌 The Shared Win
•Banks → Earn interest, fees, and cross-sales with lower costs.
•Merchants → Boost sales, loyalty, and add a new income stream.
•Consumers → Save money and get credit access.
•Banks → Earn interest, fees, and cross-sales with lower costs.
•Merchants → Boost sales, loyalty, and add a new income stream.
•Consumers → Save money and get credit access.
🏆 Examples Across Sectors
CBCCs now span every corner of daily life:
•E-commerce: Amazon Pay ICICI, Flipkart Axis.
•Telecom: Airtel Axis Bank.
•Mobility: Ola Money SBI.
•Travel: IRCTC SBI, MakeMyTrip ICICI, IDFC Indigo, etc.
•Payment apps: PhonePe SBI & PhonePe HDFC credit cards
•Dining & Fuel: EazyDiner IndusInd, IndianOil Axis.
CBCCs now span every corner of daily life:
•E-commerce: Amazon Pay ICICI, Flipkart Axis.
•Telecom: Airtel Axis Bank.
•Mobility: Ola Money SBI.
•Travel: IRCTC SBI, MakeMyTrip ICICI, IDFC Indigo, etc.
•Payment apps: PhonePe SBI & PhonePe HDFC credit cards
•Dining & Fuel: EazyDiner IndusInd, IndianOil Axis.
⚠️ The Risks in Co-Branded Cards
❌While banks and merchants both win, there are risks on each side:
🏦For Banks,
•Credit defaults: As more “new-to-credit” customers join, chances of missed payments rise.
•Reputational risk: If the merchant delivers poor service, the bank’s name gets dragged along.
•Over-concentration: Too much exposure to one brand segment could hurt if that sector slows down.
❌While banks and merchants both win, there are risks on each side:
🏦For Banks,
•Credit defaults: As more “new-to-credit” customers join, chances of missed payments rise.
•Reputational risk: If the merchant delivers poor service, the bank’s name gets dragged along.
•Over-concentration: Too much exposure to one brand segment could hurt if that sector slows down.
🛍️For Merchants,
•Low adoption: If rewards aren’t attractive, customers won’t sign up, wasting resources.
•Churn risk: Competitors may launch richer offers, pulling customers away.
•Brand dilution: A bad banking partner (poor service, hidden charges) can hurt the merchant’s image.
•Low adoption: If rewards aren’t attractive, customers won’t sign up, wasting resources.
•Churn risk: Competitors may launch richer offers, pulling customers away.
•Brand dilution: A bad banking partner (poor service, hidden charges) can hurt the merchant’s image.
🔮 What’s Coming Next
This wave is only getting stronger:
•Personalized rewards using AI.
•UPI + credit fusion → Pay with a RuPay credit card via QR codes.
•Plug-and-play card platforms (CCaaS) → letting more brands launch cards.
This wave is only getting stronger:
•Personalized rewards using AI.
•UPI + credit fusion → Pay with a RuPay credit card via QR codes.
•Plug-and-play card platforms (CCaaS) → letting more brands launch cards.
That’s the story of co-branded credit cards in India 🤝
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❤️Like this thread
🔁 Repost to share it with others
💬 Comment your thoughts below
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