India’s biggest online retailer Flipkart has joined hands with Axis Bank and Mastercard to launch a credit card. This shouldn’t come across as a surprise because other online stores have already launched similar credit cards in the past. For instance, Amazon collaborated with ICICI to launch eh Amazon Pay credit card. Then, there’s Snapdeal credit card, released in association with HDFC. And let’s not forget the PayTM credit card powered by Citi bank. Online transactions in India have grown significantly over the last year. As reported by Financial Express, the country’s cashless transactions have grown from 244.8 crores in August 2018 to 2900.33 crore up to 10 July 2019. The data comes from the government’s DigiDhan Dashboard. As of May 2019, India has roughly 49 million credit cards. CIBIL estimats that there are around 220 million credit-worthy Indians. So of course, there’s plenty of potential for growth in this segment.
Flipkart Credit Card Benefits
The biggest draw of the card is that it will offer flat 5 percent cashback on purchases made on Flipkart and its subsidiaries such as Myntra and 2GUD. The brand has also partnered with ride-hailing app Uber, hotel and flight booking portal MakeMyTrip, Goibibo, movie ticketing app PVR, and home furnishing store UrbanClap to offer 4 percent cash back. On all other e-commerce websites in India, you will get a cashback of 1.5 percent. AT this point, we are not sure whether this also includes Flipkart’s biggest competitor Amazon India. The cashback will be added to the user’s account at the end of the month.
In addition to the online transaction, the Flipkart credit card will have other benefits such as complimentary airport lounge access. Plus, you can avail up to 20 percent discount at over 4,000 restaurants across the country. Those who own a vehicle can also avail a fuel surcharge waiver of up to Rs 500 per month.
Joining Fee And Availability
In the initial phase, the Flipkart-Axis Bank credit card will be offered to select users this month. It will be then followed by a wider release in the coming weeks. The credit card has a registration fee of Rs 500. You will also be charged Rs 500 per year for the benefits it has to offer. Though if you spend over Rs 2 lakh a year using this card, you will be eligible for the waiver on the annual fee.