Co-branded credit card share likely to double by FY28

Visa, one of the leading payment networks, sees significant growth of co-branded cards in India over the next four years due to higher customer engagement of such cards compared to traditional credit cards.

- SUBRATA PANDA & MANOJIT SAHA

Co-branded credit cards are specialized cards that are issued through a three-way partnership - the issuer (bank), network, and merchant.

The share of co-branded credit cards, which accounted for 12-15 per cent of total credit cards in the previous financial year (FY24), is expected to grow significantly, potentially crossing 20-25 per cent by FY28, driven by increasing consumer demand and the rise of e-commerce, said Rishi Chhabra, country manager-India at Visa.

"This growth trajectory is twice as fast as that of traditional credit cards. Co-branded cards have a strong impact on customer engagement, with activation rates reaching an impressive 70 per cent, significantly higher than the 50 per cent seen with traditional credit cards", Chhabra told Business Standard during an interaction.

Additionally, he said, transactions on co-branded cards are 30 per cent higher than traditional credit cards while spending per co-branded card is 20 per cent higher.