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Last Updated : Jul 19, 2019 03:22 PM IST | Source: Moneycontrol.com

Flipkart-Axis Bank partner to issue 1 million credit cards by mid-2020, will offer unlimited cashback

Powered by Mastercard, the credit card will offer cashback on Myntra and 2GUD and would provide benefits to customers of MakeMyTrip, Goibibo, Uber, PVR, Gaana, Curefit, UrbanClap.

Parnika Sokhi @ParnikaSokhi
 
 
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To tap the growing pool of online retail shoppers, private lender Axis Bank and e-commerce giant Flipkart have launched a credit card. To woo customers, the credit card will offer "unlimited cashback".

Under the partnership, Axis Bank and Flipkart expect to issue one million cards within a year.

"We want to be the fastest co-branded card to reach a million. We'll get there within a year," said Sanjeev Moghe, executive vice-president, cards and payments, Axis Bank.

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Apart from Flipkart, the card offers cashback on Myntra and 2GUD. It carries benefits for users of MakeMyTrip, Goibibo, Uber, PVR, Gaana, Curefit, UrbanClap. The card is powered by Mastercard.

Banks are increasingly resorting to cashback offers to lure customers, despite some frauds being detected in the recent past.

In May, Citibank launched a co-branded credit card with mobile wallet Paytm -- backed by Visa -- which was loaded with cashback offers. This was shortly after Alibaba-backed payments portal reported a cashback fraud of over Rs 10 crore on its e-commerce arm-Paytm Mall. Following the fraud, over 100 sellers were de-listed by the company and over 10 employees were sacked.

Porush Singh, Divisional President for Mastercard - South Asia, said on July 11 that the cashback feature was aimed at enabling better market penetration in India.

"One-third of consumer spending is going to come from cities where the population is less than 10 lakhs. So as we go into these areas, we have to create the right value proposition for those people who are not looking for miles. Hence, the cashback," Singh added.

Talking about the ban on Merchant Discount Rate (MDR), Singh said that global payments companies will evaluate the way forward after seeking clarifications on the latest law.

As part of Union Budget 2019, Finance Minister Nirmala Sitharaman said that banks or merchants with annual turnover of over Rs 50 crore will no longer be allowed to charge MDR to customers. The move was aimed to encourage use of digital payments instead of cash.

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First Published on Jul 11, 2019 06:17 pm
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