3 Takeaways for Brands:

• Loyalty follows habit—not the other way around. | If users aren’t already spending with you, a card won’t fix that.
• Simple rewards build deeper habits. | 10% cashback > confusing points with 5-step redemptions.
• Cards aren’t marketing—they’re infrastructure. | Treat them like a retention moat, not a one-off campaign.

In India, loyalty isn’t earned. It’s bought—often for just ₹1000 a year.

From Flipkart and Swiggy to Amazon, Vistara, and MakeMyTrip, the biggest consumer brands are no longer just selling products—they’re selling allegiance. And they’re doing it through co-branded credit cards that offer 10% cashback, free flights, lounge access, and platform-first perks.

For users, it’s simple math. Spend ₹15,000 a month on Instamart and Dineout? You’re saving ₹1500. The loyalty doesn’t stem from emotion—it stems from efficiency.

But this shift isn’t just about rewards. It’s about control. These cards lock spend into ecosystems, convert habits into margins, and turn wallets into retention channels. The goal? Own not just the transaction, but the category, and eventually the consumer.

To understand the economics behind the cashback—and the quiet power dynamics between brands and banks—I spoke to Tejas Ghongadi, founder of The Points Code and one of India’s most trusted voices on credit card rewards.

Here’s what you need to know.

1. It’s Not the Bank, It’s the Brand

“The bank is just a distribution channel. The loyalty engine sits with the brand.”

Despite being issued by major players like HDFC, Axis, and SBI, Tejas emphasizes that most users care about the brand value, not the issuer.

Amazon Pay, Swiggy, and Vistara lead the charge because they offer simplified rewards tied to everyday behavior—not because of any bank-specific differentiation.

In fact, the same rewards in these credit cards often exist across different banks’ cards. That tells you who’s driving the bus.

Plus, co‑branded cards already represent 12–15% of India’s credit card base. That ought to account for something…

2. Simplicity Wins

“There’s no rocket science here. People want instant cashback, not reward math.”

Part of what makes co-branded cards click is the clarity of value. You spend on Swiggy, you get 10% back. You shop on Amazon, you earn Amazon Pay balance. No convoluted redemption portals, no surprise expiry dates.

That clarity builds trust, and trust breeds habit.

E-commerce platforms like Amazon and Flipkart are dominant in this industry, with the Amazon Pay ICICI Bank and Flipkart Axis Bank Credit Cards leading in issuance. Specifically, e-commerce co-branded cards account for 75-80% of all co-branded cards.

3. Fees Are Rarely the Problem—Debt Is

“As long as you’re paying bills on time, these cards are a net win.”

Contrary to popular fear, Tejas doesn’t believe annual fees are a deal-breaker. Most cards offer a matching benefit (e.g. a voucher, flight ticket, or bonus points).

Instead, the real margin for banks comes from revolvers—users who don’t pay in full. That’s where the 3–4% monthly interest kicks in.

The takeaway? Use cards as tools, not temptations.

4. One Size Doesn’t Fit All

“Don’t let the card change your behavior. Pick one that fits it.”

A key myth Tejas busts is the idea of a “best” card. Swiggy’s card may work for a foodie; Amazon’s is great for heavy shoppers. But chasing offers across platforms can backfire—especially if you start ignoring cheaper alternatives just to get cashback.

The best card? The one that rewards what you already do.

5. Loyalty is Transactional (And That’s Okay)

“It’s not emotional. If a better offer comes along, people move.”

Despite the “premium treatment” branding, most consumers stay only as long as the reward lasts.

A Swiggy user may jump ship if Zomato or Zepto offers better value. And they often do—either via new launches or after reward recalibrations (as seen in the Vistara–Air India reshuffle).

The result? Loyalty, in this case, is earned monthly, not assumed.

Also read: Dressing for Success: How Loyalty Shapes Fashion Retail

6. The Next Wave: Travel Is Taking Off

“From business class upgrades to hotel redemptions, travel cards are the new aspiration.”

While cashback cards led early adoption, Tejas notes a sharp rise in travel-based co-branded cards—Qatar Airways, Marriott Bonvoy, and of course, the once-cult Axis Vistara Infinite.

As India’s aspirational middle class grows, so does demand for status, upgrades, and lounge access—not just savings.

🧠 Final Thought: Strategy, Not Stunt

“If your brand doesn’t already have a loyal base, a co-branded card won’t create one.”

As India’s digital economy matures, co‑branded credit cards are shifting from marketing novelties to core loyalty infrastructure. Brands that once treated cards as experiments will soon view them as strategic assets—tools to lock in high‑value consumers, collect richer data signals, and steer entire spend categories. The winners won’t just offer cashback; they’ll architect closed‑loop ecosystems that blend credit, commerce, and community.

Tejas closes with a reminder: a co-branded card is not a growth hack. It’s an extension of brand trust, reach, and usage frequency. For it to work, the brand must already be sticky. Only then will the card deepen the moat.