Zomato, RBL Bank Nullify Partnership, Co-Branded Credit Cards Users Pay The Price

Foodtech major Zomato and RBL Bank have discontinued their partnership for co-branded Edition credit cards. Beginning May 15, users will not be able to use Classic and Black Edition cards.

“We wish to notify that the partnership between RBL Bank and Zomato Limited, our co-brand partner for RBL Bank Edition Classic Credit Card and RBL Bank Edition Black Credit Card is getting discontinued,” the bank said in a statement. 

Post the set date, the card dashboard will not be visible on the Zomato app. RBL Bank will replace the existing cards with the ‘RBL Bank Shoprite Credit Card’.

While the bank will begin dispatching new cards from May 15, users will be able to avail all the benefits of the new card on Edition cards from the same date. As per the bank, all outstanding dues, including ongoing EMIs, will be transferred onto the new card. 

Zomato users will be able to redeem all the cash back on the food delivery app until May 14 and any outstanding balance will be auto-credited to the new card by May 30. 

The Edition credit cards offered 5-10% cashback to users on all spending via Zomato and Blinkit apps. It also allowed users to manage their cards from within the Zomato app and track spending. The users could also avail Zomato Pro membership free of charge and gain access to all major domestic airport lounges.

The dissolution of the marriage comes three years after Zomato signed a pact with RBL Bank and Mastercard in March 2020 to launch Classic and Black co-branded credit cards. While there is no clarity on how many cards were issued in total over the course of three years, the deal enabled Zomato to build user loyalty while RBL onboarded new customers for its fintech products.

Curiously, in January, Citibank and fintech startup Paytm also ended their partnership for a co-branded credit card. 

Interestingly, Zomato has wrapped up its offering at a time when several other Indian startups have ramped up their focus on co-branded credit cards. This comes a month after HDFC Bank and Flipkart Wholesale teamed up for the launch of a co-branded credit card exclusively for Flipkart Wholesale members.

Before that, Tata Neu also signed a deal with HDFC Bank to launch a co-branded credit card across two variants. 

Besides, its competitor Swiggy, last year, was also said to be in talks with several banks for a similar programme. The development also came on the same day as Coca-Cola acquired a 15% stake in Zomato’s competitor Thrive for an undisclosed amount.