Synopsis- The Indian markets are filled with a variety of credit cards. This supply comes from the recent surge in demand of these cards. Among these we can find a number of co-branded ones as well. This article will take you through the reasons on the upsurge in the numbers of co-branded credit cards and what the future of the same will be.
Lately, we have witnessed co-branded credit cards emerging as a dynamic force in the Indian financial service ecosystem, and transforming the way banks, brands, and consumers interact. Tie-ups between financial institutions and prominent consumer brands have made it possible to get credit cards that can offer tailored rewards and benefits, which have been fuelling brand loyalty and shaping the customer engagement strategies.
The Reason for Growth
Co-branded credit cards were once one of the niche financial products available in the market, but with years, one third of newly issued credit cards are co-branded. Their market share is also expected to double by FY28 as consumer demand rises and e-commerce space continues to boom. As FY24 ended, co-branded cards had made upto 12–15% of total credit card market in India, which is a jump from just 3–5% in FY20. Industry experts predict this proportion could surpass 25% within the coming three years, as annual growth rates for co-branded cards to be around 35–40%, which will outpace traditional cards’ numbers.
Banks such as HDFC, ICICI, SBI Cards, and Axis Bank dominate the market, by leveraging on three major networks- Visa, Mastercard, and RuPay. Popular partnerships like the Amazon Pay-ICICI, Flipkart Axis Bank, and Swiggy-HDFC have fueled the acceptance rate of these cards and more individuals are participating in it, with e-commerce driving a significant portion of new cards. Along with e-commerce, food delivery, fuel sectors, and travel have also entered into the co-branded credit card space, diversifying the offerings and increasing the touchpoints for customer engagement.
Why Co-Branded Cards Win?
The foundation of co-branded credit cards lies in their ability to leverage existing brand loyalty, and offer rewards and benefits which are closely linked to consumer shopping habits. A study showed that holders of a co-branded card spends 1.2x more on average than traditional credit card users, while activation rates have upsurged to 70%, compared to the 50% of standard cards.
Consumers get exclusive perks such as higher cashback rewards, accelerated reward points, and even tailored discounts to their favourite brands, these kinds of cards could offer you about 5% cashback on Amazon and Flipkart, free lounge access for airline cardholders, and savings on fuel purchases. These kinds of attractive benefits encourage repeated usage of these credit cards, increasing loyalty, and make every transaction done by the customer more rewarding for them as well as the brand. For banks, co-branded partnerships deliver several strategic advantages:
- Low cost of acquisition: By venturing directly into a brand’s customer base, banks have made it possible to bypass expensive traditional marketing and DSA channels.
- Greater engagement: Customized offers result in higher card activation and a sustainable usage of the card.
- Market expansion: Partnerships extend reach into the untouched demographics, specifically the younger digitally-savvy customers.
- Revenue boost: Higher spending results in increased fee income and transaction volumes.
Popular Co-Branded Indian Credit Cards in 2025
| Card Name | Partner Brand(s) | Key Benefits |
| Amazon Pay ICICI | Amazon | Up to 5% cashback, no annual fee |
| Flipkart Axis Bank | Flipkart | 5% cashback on platforms, travel perks |
| Swiggy HDFC Bank | Swiggy | Food discounts, reward points |
| Club Vistara SBI Card | Vistara Airlines | Free tickets, lounge access |
| BPCL SBI Credit Card | Bharat Petroleum | Fuel savings, cashback |
| Tata Neu Card | Tata Group | Cross-brand rewards, shopping benefits |
The listed cards are unique for their blend of brand specific rewards and broader utility services, which provide a compelling reason for consumers to align their purchasing and payment behaviours with partner brands of their card.
Also read: 5 Best Credit Cards for Domestic and International Lounge Access in India 2025
Reason for the Upsurge in Credit Cards Adoption Rate
- Digital transformation: Recent developments in data analytics and AI has made it possible for banks to service personalized rewards and manage risks more efficiently than before.
- E-commerce boom: Online shopping platforms offer the scale necessary to support large loyal cardholder bases.
- Changing preferences: Young, and especially the urban consumers are trying to get tangible benefits from every transaction made, which increasing demand for cards that offer instant gratification.
- Brand synergy: Bringing payments, credit, and rewards all under one roof has enabled brands to extend themselves more in customer relationships, and have helped banks to diversify their revenue streams.
Challenges
- Regulatory restrictions: The recent RBI intervention has addressed data privacy concerns, which has restricted the sharing of sensitive customer information between banks and their brand partners. This regulatory shift is forcing banks to re-evaluate how the data is used and shared, potentially impacting the fluidity of partnerships.
- Market saturation: With time, more brands are expected to enter the space, which would probably result in less differentiation factors, resulting in risking consumer fatigue.
- Changing economics: The regulatory and economic shifts have made major players, like Bajaj Finance, to scaled back its co-branded partnerships, due to regulatory and economic shifts, stating us the caution amid the expansion.
The Bottom Line
Co-branded credit cards expected to represent over a quarter of India’s total credit card market by FY28, which states us that banks are clearly betting on brand loyalty. The model’s success relies heavily on delivering tangible and everlasting value to consumers while respecting their privacy and navigating through regulatory frameworks.
Brands have been embracing the shift. Being aware that a well-designed co-branded card can provide them with more frequent customers, that could deepen their engagement, and set them apart from competitors even in a highly competitive market.
As this ecosystem matures, co-branded credit cards are expected to expand beyond e-commerce, and move heavily towards the travel, hospitality, entertainment, and lifestyle businesses. This means even more personalized rewards and innovative financial products for the customers.
The Indian co-branded credit card revolution is more than a financial trend, instead it is a strategic alliance which built on brand loyalty. Banks and brands which are willing to invest in genuine customer value and upcoming technology, are poised to lead this domain and making it India’s fastest growing payment segment.
Written by Adithya Menon
