On Monday, the second largest private sector lender in India, HDFC Bank has joined with the e-commerce marketplace Snapdeal to launch the co-branded credit card. This credit card is targeted at getting customers of Snapdeal of which 70 percent are from smaller towns and cities to make payments online rather than ordering with the cash or delivery payment option.
As per the new launch, a customer can apply for the credit card from Snapdeal’s website, mobile application of mobile site. As soon as an application is received, the credit eligibility of the applicant will be checked. The eligibility will be done as per the Credit Information Bureau (India) Limited (CIBIL) verifications for quicker processing.
Regarding this launch, HDFC Bank’s Business Head of Card Payment Products and Merchant Acquiring Services, Parag Rao stated that this new card will serve to the changing requirements and lifestyles of the customers in the smaller towns and cities as they can use this credit card to purchase and enjoy benefits such as rewards, offers and discounts.
Also, Kunal Bahl, Co-Founder and CEO of Snapdeal stated that the customer is the center of their ecosystem and that this new initiative will take the portal in this direction.
The highlight is that even the non-customers of the HDFC Bank can apply for the co-branded e-commerce credit card. This move is targeted to tap the increasing e-commerce trend with online payments. This trend has increased the opportunity for the payment firms such as Paytm that provides attractive discounts to lure the customers.
This is not the first time that HDFC Bank has taken an initiative as the lender teamed up with Times Internet in 2013 to launch a co-branded card that provided discounts on movies and dining to the customers. The card featured a QR code that the customer can scan using his or her smartphone to go to the site where the latest offers will be displayed.