Axis Bank and Flipkart have launched a credit card which will give customers a 5% discount on the ecommerce marketplace. Customers will also be entitled to accelerated reward points on the card and get Flipkart vouchers of up to Rs 7000, which will be linked to the purchases made through the card.
More interestingly, the partnership will also offer a feature called Price Protection Coverage where the bank will reimburse the difference between price paid on a product and a lower price available on any ecommerce marketplace.
The credit card will also offer a minimum 15% off at over 5,000 restaurants across India.
The bank mentions that the card will be a contactless NFC card but it remains to be seen how adoption of POS terminals which can accept them will pan out. Axis Bank had said that it would be converting 50,000 terminals to have NFC capabilities by the end of 2015, as indicated by this Mint report. In March 2015, the Reserve Bank of India (RBI) eased norms for payments made using NFC-based or contactless cards and said that transactions below Rs 2,000 will not need a additional factor of authentication.
Axis Bank isn’t the only bank to issue credit cards with partnerships with ecommerce websites. HDFC Bank tied up with Snapdeal to launch a co-branded credit card. It had also launched a co-branded card with Times Internet which provided customers with discounts on dining & movies. Meanwhile, HSBC Bank has a credit card with MakeMyTrip and State Bank of India has one with Yatra.com.
Axis Bank is the fifth largest issuer for credit cards in the country with more than 10% market share, as on July 2016. It had 2677047 cards in circulation. The number of transactions increased 28% YoY to 5.91 million while the amount transacted grew to Rs 1,973.6 crore, up 37% from Rs 1436.3 crore from July 2015.