Summary of this article
For both businesses and consumers, co-branded credit cards are redefining the meaning of value, engagement, and loyalty in an increasingly competitive payments ecosystem.
As India’s consumers become increasingly brand-conscious and digital-first, the humble credit card has evolved into much more than a payment tool—it’s now a gateway to loyalty, lifestyle, and convenience. Among the many innovations reshaping the space, co-branded credit cards stand out as one of the fastest-growing trends.
By partnering with airlines, e-commerce platforms, fuel companies, and other retail brands, banks are offering customers highly tailored rewards and privileges that align with their everyday spending habits. For both businesses and consumers, these cards are redefining the meaning of value, engagement, and loyalty in an increasingly competitive payments ecosystem.
What Is A Co-Branded Credit Card?
A co-branded retail credit card is issued jointly by a bank (or financial institution) and a retail brand—such as an airline, e-commerce platform, or fuel company. Unlike a personal credit card, which offers broad-based rewards, or a business card designed for expense management, co-branded cards deliver sharply tailored benefits within the partner ecosystem.
For example, an airline co-branded card allows faster accumulation of air miles, while an e-commerce card rewards shoppers with higher cashback or discounts.
Pranjal Date, Head of Cards and Payments at Zaggle, notes: “Co-branded cards thrive because they sit at the intersection of loyalty and payments. They transform an everyday spend into a brand engagement opportunity, deepening the relationship between the customer, the retailer, and the bank.”
Who Is Eligible To Apply For A Co-Branded Credit Card?
Eligibility to apply for a co-branded credit card is broadly similar to regular credit cards: applicants must meet the bank’s age, income, and credit score requirements. However, brands often leverage their loyalty programs to fast-track customers.
For example, frequent flyers or high-value shoppers may receive pre-approved offers.
Rewards And Benefits
These cards generally deliver:
Accelerated rewards within the partner ecosystem (e.g., 5-10 per cent cashback on Amazon/Flipkart).
Travel perks such as free tickets, air miles, or lounge access.
Fuel-specific rewards like surcharge waivers.
Exclusive brand access to pre-sales, special discounts, or concierge services.
According to Pranjal, the real shift is toward omnichannel benefits—where a card’s reward program works both online and offline, across dining, travel, or lifestyle categories and all the benefits converge towards maximizing value that the cardholder gets from the underlying co-brand partner.
Are They Valid For International Transactions?
Since they are powered by RuPay, Visa, Mastercard, Diners or Amex, these cards are valid for international transactions. Customers can use them globally, though forex markup fees (1.5–3.5%) usually apply unless waived in premium variants.
Potential Challenges Or Risks For Companies Issuing Co-Branded Credit Cards To Employees
Challenges include:
Misuse risk if cards are used for non-business purposes.
Expense tracking issues without robust reporting tools.
Over-leverage if employees treat cards as personal borrowing channels.
Pranjal highlights the importance of spend controls and real-time dashboards, which allow corporates to cap usage, restrict merchants, and integrate expenses directly into ERP systems.
Spending Limits
Spending limits are based on the applicant’s credit profile. Within the allocated spending limits assigned by the issuer, a cardholder can further customize how much limit they intend to keep for domestic/international spending or offline/online spending or for cash withdrawals at ATMs etc. on daily or monthly basis.
Common Charges
Charges include:
Annual/joining fees (Rs 500–Rs 5,000).
Interest rates (36–42 per cent annually on unpaid balances).
Late payment fees (Rs 100–Rs 1,300).
Forex markup fees (1.5–3.5 per cent).
Some issuers waive annual fees when spends cross a certain threshold.
Emerging Trends And Future Outlook
The Indian co-branded card market is expanding rapidly. Notable trends include:
Sector diversification: beyond travel and fuel, into groceries, wellness, to fintech enabled offerings
Tier-2/3 city adoption via RuPay partnerships
UPI–Credit Card integration, expanding use cases and be present as a ubiquitous payment instrument even for day-to-day small ticket expenses
AI-driven personalization, offering contextual, dynamic rewards and hyper-personalization of card features to the cardholder’s lifestyle needs
Green co-brands, incentivizing eco-friendly choices
Pranjal adds: “The future is about convergence. Co-branded cards won’t just be about rewards at a single partner brand—they’ll evolve into ecosystem cards, seamlessly integrated with payments, loyalty, and lifestyle services.”
