Flipkart has partnered with Axis Bank to launch a co-branded credit card, which will be powered by Mastercard. The co-branded credit card will offer best-in-class benefits and unlimited cashback both on online and offline spending, a joint statement by Flipkart, Axis Bank and Mastercard said.
"This partnership is the latest effort from Flipkart, Axis Bank, and Mastercard to improve access to credit and further expand the fast developing credit card ecosystem in India," the statement said. Notably, the Flipkart-Axis Bank co-branded credit cards will be available for select users in July.
The new co-branded card comes weeks after American lender Citi Bank came up with a similar offer by tying up with payments major Paytm. "We want to be the fastest co-branded credit card to reach the 1-million-mark. We should do 1 million in a year," Mint quoted Sanjeev Moghe, Executive Vice-President for payments and cards, Axis Bank, as saying. Presently, the bank has 6.17 million cards in use, making it the fourth largest issuer in the country.
It may be noted that the new card comes with several benefits such as a 1.5% cashback on every purchase and up to 5% cashback on merchant shopping, including on Flipkart and Myntra. Additionally, a user will have to pay a joining fee of Rs 500 and another Rs 500 as annual fee for the card, which has a credit card limit of Rs 2 lakh. According to officials, analytics from Flipkart and Axis Bank will be used to identify credit worthiness of a person before issuing the card, the report added.
(Edited by: Nehal Solanki)