Axis Bank on Monday partnered with the Indian unit of electronic goods major Samsung to launch a co-branded cashback credit card. Users will receive 10% cashback on Samsung products over and above existing offers, on both equated monthly instalments (EMI) and non-EMI transactions, the bank said in a press release.
The launch coincides with the ongoing festive season sales by major e-commerce companies such as Flipkart, Amazon and Snapdeal, where electronic goods are sold by such platform at a heavily discounted prices. Flipkart’s Big Billion Days sale has started on September 23 and will conclude on September 30.
Axis Bank is the fourth-largest issuer of credit cards and has issued 88.8 lakh credit cards as of August 2022, according to the Reserve Bank of India (RBI) data. HDFC Bank, ICICI Bank and State Bank of India are ahead of Axis Bank in terms of credit cards issued, data show.
The number of credit card transactions grew 28% YoY in August to 24.5 crore, while in value terms, transactions grew 44.5% to Rs 1.12 trillion. In Q1FY23, Axis Bank disbursed Rs 18,405 crore through credit cards, which constitutes 4% of its retail book, the lender said in an investor presentation.
Through this co-branded credit card, in partnership with Samsung India and Visa, we are reiterating our commitment to drive access to formal credit in India, tapping the wide reach of Samsung India that extends beyond “Tier 1 cities and aids our objective of card penetration into Tier 2 & 3 cities,” Amitabh Chaudhry, managing director and CEO of Axis Bank, said.
The bank is offering the credit card in two variants – Visa Signature and Visa Infinite. For the former, cardholders can avail up to Rs 10,000 cashback per year with a monthly cashback limit of Rs 2,500. The latter offers a cashback of Rs 20,000 per year with a monthly cashback limit of Rs 5,000. The annual fee for the Signature variant is Rs 500 and for the same for the Infinite variant is Rs 5,000 plus taxes.
“The Samsung Axis Bank Credit Card, powered by Visa, is our next big India-specific innovation that will change the way our customers buy Samsung products and spend on services through a series of industry-leading features,” Ken Kang, president and CEO of Samsung South-West Asia, said.
“Our research shows that three out of four Indian consumers buy at least one electronic appliance or device every year and spend around Rs 40,000 on electronics annually, Sandeep Ghosh, group country manager India and South Asia at Visa”, said.