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Adani Partners With ICICI Bank To Launch Co-Branded Credit Cards

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07 Jun 2024

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In a rapidly evolving digital payment landscape, co-branded credit cards are becoming a popular tool for businesses to enhance customer engagement and loyalty. Recently, Adani One, a digital app owned by the Adani Group, launched its co-branded credit card in partnership with ICICI Bank. Let us explore the benefits of this partnership, similar initiatives by other corporate houses, and the current state of the co-branded credit card market in India.

Overview of Adani One and its Co-Branded Credit Card

Adani One, launched in December 2022, is a digital super app designed to offer a wide range of services on one platform, including booking flights, hotels, trains, buses, and cabs. It also facilitates bill payments and offers fuel services at Adani CNG pumps. The app aims to enhance user engagement within the Adani Group's ecosystem by providing integrated services and rewards. By the end of the financial year, the user base grew to 30 million, with a target to connect with 400 million users by 2030.

The cards are available in two variants—Signature and Platinum. The cards offer benefits like up to 7% Adani Reward Points on purchases across the Adani ecosystem, including flights, hotels, and fuel at Adani CNG pumps. Additional perks include buy-one-get-one movie tickets and a 1% fuel surcharge waiver. The Signature Card has an annual fee of INR 5,000, while the Platinum Card costs INR 750 annually.

Benefits for the Adani Group

The Adani Group is poised to benefit from launching a co-branded credit card with ICICI Bank in several ways:

Customer Engagement: The co-branded credit card will drive more engagement on Adani One, as users are incentivized to earn rewards.
Increased Spending: Offering rewards for spending within the Adani ecosystem encourages customers to use more Adani services and products.
Data Collection: Valuable insights into customer spending patterns can help improve service offerings and targeted marketing.
Brand Loyalty: Exclusive benefits like airport-linked perks and discounts will boost customer loyalty and retention.
Revenue Streams: Annual fees and potential interest from card balances provide additional revenue streams for Adani.

Co-branded cards of other companies

Tata Neu and HDFC Bank: The Tata Neu HDFC Bank Credit Card offers rewards across Tata Group entities and exclusive discounts on the Tata Neu app.
Reliance Retail and SBI Card: The Reliance SBI Card, available in two variants, enhances the shopping experience across Reliance's retail ecosystem, offering rewards and discounts.

Co-Branded Credit Card Market in India - RBI Regulations and Scrutiny

As of January 2024, there were 99 million credit cards in circulation in India, with co-branded credit cards making up 10-15% of the total. Four major banks—Axis Bank, ICICI Bank, HDFC Bank, and SBI Card—hold around 60% market share.

The RBI has identified misalignments in risk rating and underwriting processes for credit card customers. To prevent data leakage and ensure proper regulatory compliance, the RBI mandates that scoring systems be managed in-house by banks. Additionally, the RBI aims to control rapid credit card growth and prevent unauthorized entries into the industry.

Co-branded credit cards represent a strategic move for businesses to deepen customer engagement and loyalty. Adani's partnership with ICICI Bank is a testament to this trend, offering a plethora of benefits to its users while enhancing its ecosystem. As the market continues to grow, regulatory oversight by the RBI will ensure sustainable and secure growth, benefiting both consumers and financial institutions.

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