Kotak Mahindra Bank is currently focussing on deepening its existing co-branding partnerships while it is also looking out for partnerships in new segments, says Frederick Dsouza, Business Head – credit cards.
In addition to this, the bank is also focussing on expanding its credit card customer base in non-metro cities and towns.
“Kotak has been fairly selective about partnerships. Our strategy is achieving scale in the existing partnerships. Also, it is to keep looking out for sectors where we see opportunity to have a large impact,” he said.
Recently, the bank launched digital fashion and lifestyle credit card in partnership with Myntra.
While Dsouza did not specify any potential co-branding partners, he noted that the electronic-commerce segment presents opportunities for co-branding arrangements.
“There are a lot of ongoing discussions. It is too early to comment on specific names or segments. Electronic commerce is a wide segment of sectors in itself. There will be more opportunities there. We are definitely on the lookout.”
In fact, Reserve Bank of India (RBI) data indicates that credit card transactions have risen sharply in recent months whereas debit card transactions have been on the downtrend.
“UPI has taken away the need for a separate form factor to be able to transact. You can transact through your mobile phone. A part of the debit card spends has moved towards UPI and it will grow at a much faster pace in the coming days.”
Going ahead, Dsouza believes that the introduction of RuPay credit cards on unified payments interface will be instrumental to the growth of credit in India, and that the bank does not see any adoption challenges from the customer’s standpoint.
“In my mind, RuPay credit card on UPI will definitely change the way payments are made on credit cards. With EMI and other facilities opening up for UPI on credit cards, it will be one more powerful hook to drive further adoption.”