Flipkart and ride-hailing app Ola are going to launch credit cards in association with large banks.
Ola is planning to do a partnership with State Bank of India (SBI) to come up with the credit card.
Credit card collaboration shall assist internet companies by tracking the transaction history of the customer.
In present’s amorphous zone of digitalization. Each and every sector is getting digital. Digital modes of transactions are also getting promoted aggressively to save trees and nature for our forthcoming. In the same move e-commerce marketplace, Flipkart and ride-hailing app Ola are also set to launch credit cards in association with large banks. According to ET Report, The move will not only provide these companies insight into the spending pattern of their card users but at the same moment assist them to enter into an under-penetrated credit market.
Ola is planning to do a partnership with State Bank of India (SBI) to come up with the credit card. The procedure is going to initiate by next week. the company reportedly plans to issue 1 million cards in the first year, leveraging its 150 million customer base. Under the partnership, the bank will handle card issuance, risk analysis, statement processing, payment processing, promotions, discounts, and merchant partner controls marketing. This will patronize the merchant company to craft the rewards in such a way that it gets a peep into spending pattern of the customers.
Credit card collaboration shall assist the internet companies by tracking the transaction history of the customer, push enhancement in spending on their stores by bundling it with rewards and over time have a better assessment of their paying capacity and scan their offline spends. Both Flipkart and Ola would be following the same scenario as set by Amazon which had tied up with ICICI Bank to launch a co-branded credit card, which provides customers added rewards and benefits on the Amazon India ecosystem.
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