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Co-branded Credit Cards: Get the best of them this festive season

Other than upfront cash backs and discounts, co-branded cards also reward consumers for their loyalty through various spend based milestone benefits as well as bonus reward points upon card renewal.

Co-branded Credit Cards: Get the best of them this festive season
One can use these accumulated points and can redeem them later for varied discounts and offers.

Dussehra and Diwali are some of the most auspicious festivals in India. This is also an ideal time for people to look out for impulse deals. Many take this opportunity to finally buy those big-budget items they’ve been planning for all year round.

Industry experts say since the beginning of COVID and the lockdown, the consumer sentiment towards the buying of non-essential products has been low. However, merchants, brands in association with banks have been coming up with co-branded card propositions, to boost confidence and encourage sales amongst consumers by making products more affordable.

According to industry data, digital payment methods and co-branded cards have become the new favourite among the Indian audience, especially for people interested in shopping, dining, and travel. Today, co-branded cards are available across sectors such as retail, entertainment, travel, telecom, and so on. These cards are issued based on the partnership between merchants and banks.

Experts say co-branded cards are designed to reward cardholders as they offer attractive merchant-specific benefits which help make shopping more affordable for a consumer with high cash backs, special rewards, discounts, and EMI options, which influence buying choices.

According to industry data, it is generally seen that many credit card owners easily end up spending between Rs 1 lakh and Rs 5 lakh annually, be it on travelling, shopping, or entertainment. However, these transactions are paid for either in cash or through regular credit cards. Spending the same amount through a specialised credit card could get cashback, vouchers and reward points. For bigger purchases, paying through a debit card or cash will not get a cardholder as much value back from those spends as they would if bought using a co-branded credit card.

Other than upfront cash backs and discounts, co-branded cards also reward consumers for their loyalty through various spend based milestone benefits as well as bonus reward points upon card renewal. One can use these accumulated points and can redeem them later for varied discounts and offers.

Industry experts say as digital shopping becomes a consumers’ primary choice this festive season especially with the rise in Covid cases again, one can experience several lucrative cashback deals, exclusive discounts, and other loyalty benefits on various co-branded cards. Hence, other than the primary usage of a credit card – instant credit with an interest-free period of around 45 days, one could use these customised cards to suit their lifestyle needs, and avail a variety of deals, rewards, and discounts.

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