The news: Samsung will launch two co-brand Visa credit cards in India with Axis Bank, per a press release.
Both cards offer 10% cash back on all Samsung purchases and rewards for purchases made at select merchants, including online grocery provider bigbasket and food delivery brand Zomato. Neither has a transaction minimum.
The cards come in two tiers:
Why it’s worth watching: India’s credit card market is ripe for growth.
There were about 939 million debit cards in circulation in August compared with only about 78 million credit cards, according to data from the Reserve Bank of India. And the government is trying to increase credit card use: Last week, the National Payments Corporation of India expanded the Unified Payments Interface (UPI)—the country’s mobile bank-to-bank instant payments system—to link with credit cards. This feature will let more merchants in India take credit card payments indirectly, which could boost overall use.
While several fintechs have been competing to fill the credit gap, established issuers like Axis Bank may have an easier time doing so thanks to their scale. The government’s recent crackdown on fintech lending may also put Axis Bank in a better position to grab market share.
The opportunity: Here’s how each player involved can win from the Samsung Axis Bank Visa credit cards.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.