Kotak Mahindra Bank Myntra credit card offers shoppers a bonanza; But is it worth your time? A Moneycontrol review

He says that the card’s target customer segments are millennials (those born between 1981 and 1995), as well as Gen Z (those born between 1996 and 2010).

But the benefits don’t just stop at Myntra. Users will earn a 5 percent cashback while spending at preferred partners Swiggy, Cleartrip, Urban Company and PVR up to Rs 1,000 per month.

Elsewhere, you will earn 1.25 percent cashback, excluding rent, recharges, fuel, and Equated Monthly Instalment spending.

Aside from complimentary domestic airport lounge access, you could also get two PVR tickets a quarter, if you spend at least Rs 50,000 per quarter.

How much does it cost? 

The credit card has a joining fee of Rs 500, but as an introductory offer, the bank is offering the card at zero joining fee for a limited period. The renewal fee of Rs 500 is applicable after completing one year if you get the card without joining fees. However, the renewal fee of Rs 500 will be waived on spending Rs 2 lakh or more a year.

Users get a virtual and physical card after completing the application process and video Know Your Customer process. The credit card will be available on MasterCard and RuPay networks.

Also read: The right way to get the first credit card and build a credit history

What works 

Kotak Myntra credit card users get a 7.5 percent instant discount on all Myntra transactions with a cap of Rs 750 per transaction.

For instance, on the first purchase of Rs 9,000 on Myntra, you will get an instant discount of Rs 675. Then on the second and third purchases of Rs 8,000 and Rs 9,500, you will get an instant discount of Rs 600 and Rs 713, respectively.

“To get a maximum benefit of instant discount from Myntra, you may have to break the transactions/purchases in small denominations,” says Sumanta Mandal, Founder, TechnoFino, a firm that tracks credit card trends.

Flipkart Axis Bank card offers 5 percent unlimited cashback on Myntra. “Flipkart Axis Bank Card would be beneficial only when someone is buying a single product/billing above Rs 15,000 on Myntra because of 5 percent unlimited cashback,” says Ankur Mittal, Co-Founder and Chief Technology Officer, Card Insider.

Standard Chartered Digi Smart credit card offers a 20 percent discount, but with a cap of Rs 700, and discount is applicable only on the first Myntra transaction of the month (refer to graphic).

Apart from the discount on Myntra, the card provides a 5 percent cashback on partner brands, and an unlimited 1.25 percent cashback on all other spends.

“What makes this card stand out is the Myntra Insider membership, offering early access to sales, exclusive discounts and offers, and Supercoins,” says Mittal.

“The card is being issued on the RuPay network, which can be linked to the UPI,” says Mandal.

He adds that this can penetrate the market and contribute to an increase in usage as a preferred mode of payment.

Also read: Six ways to protect your job in the current storm of layoffs

What doesn’t work 

Mandal says that the fee waiver condition is high compared to other co-branded cards in this segment. For instance, on Standard Chartered Digi Smart credit card, the monthly fee is Rs 49 and if the user spends Rs 5,000 per month, the fees get reversed.

“A card user needs to spend Rs 17,000 to Rs 18,000 per month on credit transactions, which is a bare nominal expectation and it will take your total expenditure to Rs 2 lakh and above. Then the renewal fees of Rs 500 will be waived off,” says Dsouza.

There is a joining/renewal fee of Rs 500 on the Kotak Myntra card whereas the ICICI Amazon Pay credit card is a lifetime-free credit card.

“We are not seeking to claim a joining fee from anyone. In fact, we are giving the benefit back instantly to our users,” says Dsouza. For instance, the users get a voucher worth Rs 500 from Myntra on the first transaction with a card.

Also read: How will tax on foreign tour spends on credit cards affect your holiday. The complete guide. 

Should you apply? 

For the fashion-loving generation, Myntra has become a popular website to shop. Kotak Myntra credit card’s instant discount on Myntra and other benefits on lifestyle expenses of the millennials and Gen Z does sweeten the shopping experience.

“If you are a loyal Myntra customer, there is no better card in the market currently than the Myntra Kotak credit card,” says Mittal.

But it’s still worthwhile to first check your spending patterns and not just buy the card because it gives you discounts. Mandal also advises you to compare the annual fees that other cards offer.

A warning: If you do apply for this shopping card, do not overspend just because there are discounts on offer.

Make sure that you have a disciplined approach to your credit behaviour. Since a credit card offers a significant interest-free period, there may be a tendency to overspend while shopping and chasing milestone benefits.