The Hindu Business Line : Barclaycard eyes partnerships for growth

Although a recent entrant in the domestic credit card market, it soon hopes to be among the larger players in this market on the back of its brand equity, product innovation and the focus on scale besides partnerships.

"We believe that partnership is a big way to grow in India. We are talking to large number of prospective partners in many sectors with whom we can work and where there is synergy in terms of brand and sectors. We are looking at both co-branded and affinity cards," Mr Kusal Roy, Head of Cards-India, Barclays Bank Plc, told Business Line here today.

He, however, declined to name the prospective partners or the sectors in which the company operates.

Last month, Barclaycard launched three new products for the Indian market — Barclaycard Gold, Barclaycard Smart Budget and Barclays Premier League Barclaycard. Plans are afoot to launch an advertising campaign across multiple-media.

Mr Roy also said that Barclaycard is keen to quickly get a big slice of the "incremental monthly origination" in this market.

"We have aggressive appetite in terms of numbers and do intend to become one of the larger banks in the credit card sector as far as share of flow goes — incremental origination every month", he said.

Asked whether being a late entrant posed disadvantages at the marketplace, he replied in the negative. He also maintained that the Indian credit card market was "not overcrowded" and that the market was large enough for several players.

Market size

Internal estimates of Barclaycard have pegged the Indian market size at 23 million cards, with potential to grow to at least 55 million cards by 2010-11.

Barclaycard is looking at every mass-market distribution channel including Internet; short messaging system and direct sales to reach out to the customer, Mr Roy said.

Having launched the three new products in Mumbai, Chennai, Bangalore and Delhi, Barclaycard has plans to expand slowly and steadily into other cities as well.

"Intention is to cover as many of the large cities as possible and go to the second rung cities", Mr Roy said.

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