Co-brand cards are designed to reward cardholders for their patronage to a brand. They are also designed to drive cardholders back to their websites and retail locations.
Diwali is one of the most auspicious festivals in India, celebrated with utmost zeal by millions of Indians. In some religions, Diwali is considered as the start of a New Year. It is a festival where families would meet to get-together and enjoy home-cooked food, vacations, and tons of shopping. This is the ideal time for consumers to lookout out for impulse deals. Consumers are also taking the opportunity to finally buy those big-budget items they’ve been planning for all year long. However, we are in a grim year with the current pandemic and the resultant loss of jobs and pay cuts along with extravagant prices of consumables.
The consumer sentiment towards the buying of non- essential products has been low since the beginning of the lockdown. To boost confidence and encourage sales amongst consumers by making products more affordable, merchants, and brands in association with banks are coming up with co-branded card propositions.
In the last few years, we have witnessed growing acceptance towards various digital payment methods and co-branded cards are becoming a new favorite with the Indian audience who love to invest in their areas of interest like shopping, dining, and in time, travel. Today, co-branded cards are available across sectors such as travel, telecom, retail, entertainment, and so on. These cards are issued basis a partnership between a leading merchant and an issuer bank.
Co-brand cards are designed to reward cardholders for their patronage to a brand. They are also designed to drive cardholders back to their websites and retail locations. These cards offer very attractive merchant-specific benefits which help make shopping more affordable with high cash backs, special rewards, discounts, EMI’s to brand- loyal consumers that result in strengthened brand preference and influence buying choices.
Apart from the upfront cash backs and discounts, the cards also reward consumers for their loyalty through various spend based milestone benefits as well as bonus reward points upon card renewal. Consumers will accumulate these valuable loyalty points that can be redeemed later for varied discounts and offers. The redemption of these offers is very simple to encourage consumers to come back for more and build a long-term relationship with the brand. Cardholders are also rewarded while making purchases at non-partner brands, as the reward points on the purchase will accrue and can be redeemed against a purchase made with the partner brand.
Mastercard has a global legacy and experience in co-branded cards which enable to co-create a distinct consumer value proposition along with the partner merchant and issuer bank. As digital shopping becomes a consumers’ primary choice this festive season, they can experience several lucrative cashback deals, exclusive discounts, and other loyalty benefits on various co-branded card programs by Mastercard including the Flipkart Axis Bank card for a plethora of goods online at the lowest prices, IKEA Family Credit Card by Citi for buying furniture on easy and attractive EMI’s, Indigo HDFC Bank card & Vistara SBI card for air travel, Zomato RBL Bank card for ordering food from your favorite restaurants and many more.
Co-branded cards offer additional benefits tailored as per the consumption habits of the consumers. Consumers must make sure that they choose the right mix of benefits to attain maximum value and make their shopping affordable. Last but not the least, always remember to redeem the accumulated reward points and free vouchers before they expire.
By, Rajeev Kumar K., Senior VP, Market Development, South Asia, Mastercard