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Country’s third largest private sector lender Axis Bank announced its tie up with Tata-Singapore Airlines joint venture airline Vistara to launch three travel credit cards next year under a strategic partnership.
The co-branded cards will be unveiled in mid-January offering a host of privileges and benefits to the business and leisure travellers of Vistara under the carrier's Club Vistara frequent flyer program, an Axis Bank statement said.
The country's third full service airline after national carrier Air India and Naresh Goyal-promoted Jet Airways, Vistara last month for the first time breached the one lakh passengers mark since its launch in January this year.
Rajiv Anand, Group Executive and Head-Retail Banking, Axis Bank, said, “This is our first co-branded travel card in the domestic space and currently there are three types of cards under this partnership. We will reveal more details in January... The personalised benefits from the co-branded credit card offering will depend on the frequency of one's travel, starting with the base card for occasional traveller to a super-premium credit card for frequent flyers.”
The product suite is 3-tiered depending on the frequency of one’s travel starting with an entry level card will be targeted at new users and occasional travellers while two other categories will target the existing customers under the premium and super-premium segment for frequent flyers.
Axis Bank’s credit card portfolio currently accounts for less than 5 per cent of the total retail book. The bank saw an increase of about 20 per cent in the card spends for the festive month of October and November.
The growth in the credit cards stands in the vicinity of 50 per cent and the bank expects to see continued and stable growth in the new issuances of credit cards. As of August 2015, Axis Bank has a total of 1.9 million card issuances, while the number has crossed 2 million now.
Recognising that travel is a key spend category for customers and is growing at a rapid pace Axis Bank chief Shikha Sharma expects to further strengthen its travel product suite with a compelling proposition
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