IPO-bound Snapdeal, a value commerce platform, has joined hands with BOB Financial and NPCI to launch a co-branded contactless RuPay credit card. This co-branded credit card, which will be offered on the Rupay platform, aims to popularise the adoption and usage of credit cards among the growing number of online buyers from India’s smaller cities and towns.
As a Bharat-focused e-commerce company, Snapdeal receives more than 86 per cent of its orders from outside metro cities, with more than 72 per cent of its orders coming from buyers living in Tier 2+ cities and towns, each with a population of less than 1 million (referred to as Bharat). Snapdeal’s core target audience are value-seeking, middle-income, price-conscious buyers who predominantly live in the smaller cities of India.
The Snapdeal-BoB co-branded contactless card will be rolled out by March 2022 and will provide a range of reward points and other benefits to cardholders - both while they shop on Snapdeal and also when they use the card at other online and offline transaction points.
BOB Financial Solutions Limited (BFSL) is a wholly-owned subsidiary of Bank of Baroda (BoB), one of India’s largest public sector banks. Established in 1994, BFSL issues Bank of Baroda credit cards.
Himanshu Chakrawarti, President, Snapdeal Limited, said: “We are particularly delighted to partner with BOB Financial and NPCI for the launch of this credit card. Just like Snapdeal, both Bank of Baroda and RuPay have a deep connect with users in Bharat. The synergies of this partnership will help accelerate the adoption of digital payments, especially amongst users living beyond India’s metros and Tier 1 cities”, said.
Shailendra Singh, MD & CEO, BFSL, said: “We are pleased to partner with Snapdeal in our shared objective of making credit card payments popular and rewarding for a large number of new users, who are now getting familiar and comfortable with online shopping options. We continue to acquire more customers from non-metros and other smaller locations and believe that Snapdeal’s close connect with buyers in those locations, along with Bank of Baroda’s stature and distribution strength, will provide the right opportunity to promote credit card usage among new users”.
The partnership between Bank of Baroda, National Payments Corporation of India (NPCI) and Snapdeal brings together parties with a good understanding of the digitally-evolving Indian consumer. Between April 2018 - September 2021, more than 5 crore unique customers have shopped one or more times on Snapdeal. RuPay cards are issued by more than 1,100 banks, which include Public Sector Banks, Private Sector Banks, Regional Rural and Co-Operative Banks.