Indian food delivery unicorn Zomato is entering the fintech segment after stepping into the video streaming space last year. The company has partnered with RBL Bank to launch two co-branded credit cards, Edition Classic and Edition Card, for Zomato users.
The Edition and Edition Classic cards can be used just like regular bank-issued credit cards to make payments online or offline. However, for every payment made through the credit card, users will earn Zomato credits.
In the Edition card, users get 10% cashback to their Zomato wallet for payments made through Zomato app or at its restaurant partners. Besides this, users will also get 2% Edition Cash for all online transactions, 1% on offline purchases and 2000 bonus Edition cash when spending over INR 5 Lakh. Zomato has confirmed that 1 Edition cash is equivalent to INR 1.
The Edition card also offers a global Zomato Gold membership, which will be automatically renewed annually, as long as the credit card is active. Moreover, the card also offers complimentary lounge access to all major domestic airports in India.
On the other hand, Edition Classic Card also offers complimentary lounge access, but does not come with a global Zomato Gold membership. The users can get 5% cash bank in Zomato wallet for payments made through the food delivery platform or at its partner restaurants. Besides this, users can also get 1.5% Edition Classic Cash cashback for online transactions, 1% on offline transactions and 2000 bonus Edition Classic Cash for spending over INR 2 Lakh.
Founded in 2008 by Deepinder Goyal and Pankaj Chaddah, Zomato enabled online payments through debit cards, credit cards and net banking on its platform back in 2015. Besides this, Zomato had also launched zomato Credits for referrals, refunds and cashback at the same time.
Zomato is currently the biggest online food delivery and aggregator platform in India. With the Uber Eats’ Indian business acquisition of January 2020, the company has managed to widen the gap between itself and its rival Swiggy. Currently, the company operates in 11 countries and caters to the needs of the 48 Mn customers’ Zomato serves every year. Out of these 23 Mn users are from India.
Co-Branded Credit Cards In India
Zomato is just the latest tech startup to join the credit card bandwagon. Several Indian startups such as Paytm, Flipkart, Practo, Amazon, Ola and others have also launched similar co-branded cards.
HDFC Bank has partnered with the US-based retailer Walmart and Indian ecommerce company Snapdeal. The HDFC Bank and Walmart partnership was exclusively for Best Price Modern Wholesale “B2B Cash and Carry” stores. The Snapdeal-HDFC partnership targeted Tier II and Tier II towns and cities.
Flipkart, too, partnered with Axis Bank to launch its own credit card powered by Mastercard’s payment architecture. The card offered unlimited cashbacks and discounts on online and offline transactions. On the other hand, even Amazon has its own co-branded credit card in partnership with ICICI bank, which offers 5% rewards points to Amazon Prime members for shopping on the platform.