How co-branded cards are making shopping affordable this festive season?

Authored by Rajeev Kumar Ok

Previously few years, there was super development within the digital funds’ area in India as shoppers and retailers have skilled the comfort and security of digital adoption.

Amidst the rising acceptance, co-branded playing cards have emerged as an efficient option to cater to the Indian viewers who like to spend money on their areas of curiosity like procuring, eating and in time, journey. These playing cards are issued foundation a partnership between a number one service provider and an issuer financial institution and sometimes sport the logos of the financial institution and the service provider on the cardboard. These co-brand playing cards provide very engaging merchant-specific advantages together with excessive money backs, particular rewards, reductions, EMI’s to brand-loyal shoppers that lead to strengthened model choice and affect shopping for decisions.

Utilizing a co-branded card is taken into account a “good method” of buying as the buyer earns unique money backs, reductions and different rewards for every transaction with the model. Whereas utilizing a co-branded card, a client is nicely conscious that aside from the upfront money backs and reductions the spends will assist accumulate precious loyalty factors that may be redeemed for various reductions and gives.

The trouble-free redemption course of encourages shoppers to return again for extra and construct a long-term relationship with the model. Cardholders are additionally rewarded for purchases at non-partner manufacturers, because the reward factors on the acquisition will accrue and might be redeemed towards a purchase order made with the associate model.

Earlier, co-branded playing cards have been in style solely in bank cards however with the arrival of latest use circumstances like transit, meals and air journey, card issuers are developing with co-brand pay as you go and debit playing cards as nicely.

Banks are additionally associating with public providers like metro and bus authorities to problem co-branded pay as you go / debit playing cards which allow residents to make use of public transport by paying by means of the identical card that they use for procuring or making cost at every other retailer. Co-brand pay as you go and debit playing cards additionally serve prospects that don’t qualify for co-brand bank cards on account of numerous causes.

The festive season in India has simply began. Till final yr, the season majorly meant household get-togethers, home-cooked meals, holidays and tons of procuring. Regardless of the varied geographies, folks used to go on a procuring spree because the month-long pageant interval was thought of auspicious for making new purchases. Nevertheless, this yr, the continued pandemic and the resultant lockdown has a profound impact on people with lack of jobs and pay cuts together with extravagant costs of consumables.

The buyer sentiment in direction of purchasing for non-essential merchandise and items has been low because the starting of the lockdown. To encourage gross sales by making merchandise extra inexpensive for shoppers and uplift client sentiment, retailers and types are partnering with banks to provide you with strategic co-branded playing cards. Mastercard has been the worldwide chief within the co-brand card area.

The worldwide legacy and expertise in co-brand area allow Mastercard to co-create distinct client worth propositions together with the associate service provider and issuer financial institution. As digital procuring turns into shoppers’ major alternative this festive season, they’ll expertise a number of profitable cashback offers, unique reductions and different loyalty advantages on numerous co-branded card applications by Mastercard together with the Flipkart Axis Financial institution card, Ikea Citi Financial institution card, Indigo HDFC Financial institution Card, Vistara SBI card, Zomato RBL Financial institution card and plenty of extra.

Co-branded bank cards often register 2-7 instances greater spending as they entice shoppers with an affinity for spending in sure rising classes. Since each single co-branded card has a gorgeous reward program, the necessary query is whether or not the cardboard has the right combination of onerous advantages and tender advantages to drive further gross sales.

It’s mentioned, if the co-branded card(s) are chosen appropriately and used nicely, it might considerably cut back the acquisition value for a client by means of money backs, reward factors, reductions, free vouchers, complimentary tickets and a plethora of different way of life advantages equivalent to complimentary entry to numerous airport lounges and golf programs. One should be certain that they go for the proper co-branded card to maximise advantages and cut back value and keep in mind to at all times redeem the gathered reward factors and free vouchers earlier than they expire

Rajeev Kumar Ok is Senior Vice President, Market Growth, South Asia at Mastercard. Views are private

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