How to get own credit card from Ola and Flipkart very soon!
This move is set to be made as the companies to gain new knowledge about the spending patterns of their customers and help them enter new markets.
Launching credit cards seems to be the right direction for Ola as their Ola credit services were a huge success.
Flipkart too has seen great success in their ‘cashless credit’ offering on the purchases limited to 60,000 INR via a partnership with the finance company, Kissht.
Cab hailing company, Ola and e-commerce giant Flipkart will soon be breaking new ground in the world of digital payments as they are all set to launch their very own credit cards in partnership with major banks.
This move is set to be made as the companies to gain new knowledge about the spending patterns of their customers and help them enter new markets. Ola is said to be partnering up with SBI, whereas Flipkart will be collaborating with Axis bank or HDFC bank.
Launching credit cards seems to be the right direction for Ola as their Ola credit services were a huge success. This launch would also be a natural progression for Ola which had launched Ola money in 2015 and Ola post-paid a short time later. Keeping all this in mind, in May 2018, Ola had reportedly put together a team for handling the launch of their credit cards. The company might start rolling out credit cards as early as next week. It is also reported that Ola has the target to issue a million credit card within this year catering to its 150 million customers.
In this partnership, the bank will be looking after the back- end work such as card issuance, risk analysis, statement processing, etc. the merchant partner will look after operations such as marketing, discounts, and promotions. This will allow the company to structure its rewards in such a way that it gets the gist of the spending patterns of its customers and understand them better. Further, it will also help in tracking the transaction history of the customer and know their offline spends. The rewards generated by these cards are also expected to be higher than market standards as a ploy to interest more customers. It is also reported that Ola and Flipkart are looking to build their personal credit underwriting model which will use their customer data to offer credit to customers who don’t have a credit history. Ola has also reportedly applied for a permit so that they can launch a non-banking finance company Like Ola, Flipkart to has seen great success in the means of their ‘cashless credit’ offering on the purchases limited to 60,000 INR via a partnership with the finance company, Kissht. Thus, Flipkart is also eyeing the consumer-loan market. The launch of their credit card is expected in the next 4 months. Flipkart has allegedly been tracking 500 to 1000 points to gain more insight into a customer’s ability and intent to repay loans. These data points will reportedly be shared with banks for better credit scoring. The e-commerce giant is said to be fine-tuning its buy now pay later feature.
Notably, Amazon had famously tied up with ICICI bank to launch a co-branded credit card which gave customers added benefits and discounts on Amazon India. The customers earn a 1% payback on all payments as well as rewards points in their Amazon pay wallet.
Thus, credit card collaborations are said to be highly lucrative for banks as they gain access to a whole new pool of customers and also for merchants who are unaware of what the customer buys beyond their stores. The combination of both databases helps both the banks and merchants gain a better understanding of the customer.
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