ET had reported on July 5 that Swiggy was in the final stages of launching a co-branded credit card in partnership with HDFC Bank, as it looks to retain customers and boost basket sizes while providing flat discounts and special offers for cardholders.
Swiggy’s co-branded credit card will be hosted on Mastercard’s payment network.
Last month, fashion etailer Myntra partnered with Kotak Mahindra Bank to launch a co-branded credit card. Myntra’s parent, Flipkart, had launched a co-branded card with Axis Bank last year. Flipkart Wholesale, the business-to-business arm of Flipkart, also launched a co-branded card with HDFC Bank this year for small merchants and grocery stores.
In a statement on Wednesday, Swiggy said that its co-branded credit card users will get a 10% cashback on its platform for spends across food delivery, quick commerce grocery delivery, and dining out.
The cardholders will also receive a 5% cashback on shopping across major ecommerce platforms, including Amazon, Flipkart, Myntra, Nykaa, Ola and branded fashion websites, such as Nike, H&M, Adidas and Zara, to name a few.
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The cardholders will get cashback in the form of Swiggy Money, which can be used across Swiggy for various transactions.“We recognize that modern-day consumers actively seek rewards, offers, and cashback programs that add value to their spending. Keeping this in mind, we have launched this all-encompassing card in partnership with HDFC Bank and Mastercard that makes everyday shopping across a range of categories more rewarding and convenient,” Rahul Bothra, Swiggy’s chief financial officer, said in a statement.
Citing sources, ET had also reported earlier that Swiggy had set up a sizable tech team to enable faster banking integrations for the co-branded product.
Meanwhile, Swiggy’s rival Zomato has retreated from the co-branded card segment.
In 2020, Zomato had launched a line of co-branded credit cards with RBL Bank, but discontinued the service this April.
“Dining and grocery are at the core of customer’s daily needs, and with this strategic collaboration we are offering convenience of both categories bundled with great value. The cardholders will be able to enjoy exclusive deals and unparalleled convenience on an array of products and services,” said Parag Rao, country head, payment business, consumer finance, technology and digital banking, HDFC Bank.
Swiggy’s plan to ramp up its credit play comes at a time when it is diversifying from the food tech business and quick-commerce to become a larger ecommerce platform.
The company is running pilots in Bengaluru for a service named ‘Maxx’, which provides goods across home and kitchen appliances, utensils, electronics, babycare products, as well as clothing.
Through ‘Minis’, Swiggy has also entered the marketplace for direct-to-customer (D2C) brands.