In a major development, e-commerce major Flipkart has joined hands with Axis Bank to launch the co-branded credit card, powered by Mastercard’s payments architecture. Customers will be able to avail the benefits with the help of these credit cards. They will be entitled to unlimited cashback and discounts on all spends, both online and offline. This month only a handful of selected users will be able to be this credit cardholder.
In the coming weeks, it will be opened to all customers. Customers will have to pay Rs 500 towards registration fee with an annual waiver on spends of Rs 2 lakh. The cardholder will also be able to apply for a 20 percent discount and 1.5 percent cash back on Axis Bank's partnered restaurants, across the country.
Flipkart is mainly targeting younger users as they make up the bulk of Flipkart users. The cashback will be available on Flipkart, Myntra, and 2GUD. Flipkart has also partnered with MakeMyTrip, Goibibo, Uber, PVR, Gaana, Curefit and UrbanClap. The Credit Card will also offer its customers extra savings on all EMI spends on the Flipkart platform.
Though 90% of transactions in India are still processed in cash, we are seeing a sizable and undeniable shift towards digital payments. This has been spurred by the booming popularity of online shopping and e-commerce – which now account for over 40% of all digital payments in India – and are poised to grow even further in line with the Government of India’s efforts to drive digital adoption across the ecosystem - Ari Sarker, co-president, Asia -Pacific Mastercard
With the launch of their credit card, Flipkart joins Amazon, Paytm and Ola. In May 2019 Ola made a deal with SBI and Visa to launch Ola Money. At the same time Paytm launched a Paytm First Credit Card with Citibank. In April 2019, Amazon launched Amazon Pay ICICI Bank Credit card, and in March 2019 Apple launched Apple Card. In this age of UPI payment methods, VISA and Mastercard have been struggling to keep up with the new practice, and Mastercard’s partnership with Flipkart is a step toward capitalizing the credit wave.