Co-Branded Credit Cards – What They Are & How They Work

Credit card use is growing quickly in India. As per RBI data, people spent ₹1.89 lakh crore using credit cards in December 2024, which is 11.1% more than in December 2023. Even though spending dropped a little in January 2025, it was still 10.6% higher than the same month last year. This growth is happening because getting a credit card has become easier, and more people are spending on shopping, travel, and daily needs. Young people, in particular, are using credit cards more often to earn rewards and manage their spending. To attract more users, banks and card companies are launching new credit card options, including special co-branded cards with popular brands.

What Is a Co-Branded Credit Card?

Co-branded credit cards are special credit cards launched by banks in partnership with popular brands. These cards have the logos of both the bank and the brand, and they give extra rewards or benefits when you spend with that brand. They are made for people who shop often with certain companies, like travel sites, shopping apps, or entertainment platforms.

For example, the Amazon Pay ICICI Credit Card gives cashback when you shop on Amazon. The Flipkart Axis Bank Credit Card offers rewards for purchases on Flipkart, Myntra, and more. The Axis Bank Atlas Credit Card is great for travelers, offering flight miles, upgrades, and airport lounge access. If you regularly shop from a brand, using a co-branded credit card linked to that brand can help you save money and enjoy special perks.

How Co-Branded Credit Cards Work

Co-branded credit cards are created through a partnership between a credit card company and a brand, like an airline or a store. These cards feature the brand’s logo and colors and offer special rewards linked to the brand. For example, an airline co-branded card might give you extra miles, early boarding, or free lounge access. A retail co-branded card might give discounts, cashback, or special deals at that store.

Why Are Co-Branded Cards Different?

Co-branded credit cards come with many special features, including:

Welcome gifts such as vouchers or bonus reward points
Higher rewards or cashback on specific categories like shopping, travel, or fuel
Free access to airport lounges or exclusive brand sales
Lower interest on EMI (Equated Monthly Installment) purchases
Annual fee waivers if you meet the spending limit

These benefits are not always available with regular credit cards. That’s why many people prefer co-branded cards for better value.

Benefits of Co-Branded Credit Cards

Extra Rewards and Discounts: These cards give you better rewards when you shop with the partner brand. You might get extra cashback, special discounts, or bonus points on things like shopping, travel, fuel, or groceries.
Special Offers and Gifts: Many co-branded cards give free welcome gifts like vouchers or flight tickets. You can also enjoy lower interest rates on big purchases through easy EMI plans. Plus, it’s simple to use your points at the brand’s website or store for real savings.
More Reasons to Stick with a Brand: People often keep shopping with the same brand to earn more rewards or get special benefits. Even if your credit score is not perfect, you might still get access to perks that aren’t available on regular credit cards.

How to Choose the Right Co-Branded Card

There are many co-branded credit cards in India. Each one is best suited for a different type of spending. Here’s how to pick the right one:

Travel often? Choose an airline card (like Vistara or Air India cards).
Shop online? Go for Amazon or Flipkart co-branded cards.
Drive daily? Look for fuel cards from HPCL, BPCL, or IndianOil.
Stay in hotels? Pick cards partnered with hotel chains like Marriott or Taj.
Order food often? Try a card that gives high rewards on dining and delivery apps.

Tip: Think about where you spend the most. Then pick a card that gives rewards in that area.

Things to Know Before Using Co-Branded Cards

You might need to spend more with the partner brand to get the best rewards.
Having too many credit cards can be difficult to manage.
Your needs can change over time. For example, a travel card may not be helpful if you stop flying.
Check the Value: Make sure the rewards, fees, and benefits fit your spending habits and financial goals.
Know How to Use the Rewards: Understand how you can redeem your points—whether it's at the brand’s store, for travel, or as statement credits.
See If You Qualify: Check the requirements for applying, like credit score or income level.

Tips to Get the Most Out of Your Co-Branded Credit Card

Use the Sign-Up Bonus: Many cards give bonus points or perks when you first join—don’t miss out.
Spend in the Right Places: Use your card more with the brand or in categories that offer extra rewards.
Track Your Usage: Regularly check your purchases, rewards, and statements so you don’t miss out on benefits and stay in control of your money.

Bottom Line

In India, co-branded credit cards are becoming more popular because they offer great value, especially for those who shop or travel with specific brands. Choosing the right card can help you save money, earn rewards, and enjoy extra perks. Just remember to use it wisely and pay your bills on time.