E-commerce company Flipkart partnered up with Axis Bank to develop and release its own credit card. The Times of India reports that the co-branded offer is powered by Mastercard. The card will be available to customers who are qualified as new-to-credit.
Amitabh Chaudry, MD & CEO of Axis Bank, remarked that there are 220 million (22 crores) Indians with eligible credit scores. Chaudry said that there are 72 million individuals who are “credit active” and are maintaining a “live account with a bank or lending body.”
However, at least 1/3 of the 220 million individuals with qualified ratings have not availed any services from “formal financial institutions.”
Axis Bank’s collaboration with the Walmart-owned firm is aimed at offering accessible credit offers in India. Flipkart CEO Kalyan Krishnamurthy said that this move will create “meaningful growth” in the country.
The Flipkart Axis Bank Credit Card is available for Rs 500 joining fee, with no annual fee for the first year and Rs 500 for the next year. The Times of India notes that the bank can waive annual fees when customers spend more than Rs 200,000 (Rs 2 lakh) annually. The finance charges for retail purchases and cash is 3.4% or 49.3% annually.
It also offers 5% cashback for Flipkart, Myntra and 2GUD transactions, as well as 4% cashback on select merchants. Four complimentary lounge visits to partner airports in the country are also available per calendar year.
Other partner brands and establishments include Uber, MakeMyTrip, and UrbanClap.
This offer can be availed by select clients this month. All customers can apply for this offer in the proceeding weeks.
Flipkart is already implementing its own payment system PhonePe. However, the e-commerce firm believes that this partnership with Axis is expected to aid in “[reducing] cash-on-delivery orders.”