India’s credit card and digital payment market has seen dramatic shifts in recent years. Consumers are no longer just limited to traditional credit cards issued by banks. Now, co-branded credit cards, easy EMI (Equated Monthly Installment) plans, and Buy Now Pay Later (BNPL) services are readily available and gaining rapid popularity. These innovative products offer customers more flexibility in spending, reward programs tailored for specific brands, and new ways to manage cash flow—all driven by partnerships between banks, fintechs, and major retailers. In this article, we explore why these solutions are on the rise, what makes them appealing, and how you can best use them for your own financial advantage.
The New Era of Co‑Branded Credit Cards
Co-branded credit cards are the result of collaborations between a bank or credit card issuer and a major brand—like an e-commerce platform, airline, or fuel provider. These cards often come packed with benefits tied to a particular ecosystem, adding value to regular spenders.
- Amazon Pay ICICI Credit Card: This card rewards online shoppers with unlimited cashback on Amazon and attractive fuel surcharge waivers. Read more about Amazon Pay ICICI Credit Card.
- Flipkart Axis Bank Credit Card: Regular Flipkart shoppers enjoy high reward rates and exclusive deals here. Check Flipkart Axis Bank Card highlights.
- Indian Oil, HPCL & BPCL SBI Cards: These are focused on maximizing fuel savings and rewards for regular drivers.
Deep integration with partner brands means higher rewards and easier access to offers, making co-branded cards an immediate hit among specific user groups.
Advantages of Co‑Branded Cards
- Tailored Rewards: Cashback and benefits are designed around your frequent purchases.
- Exclusive Offers: Cardholders get brand-specific discounts and early sale access.
- Loyalty Perks: Many offer extra loyalty points or vouchers within the partner ecosystem.
Before choosing one, always compare the card’s annual fee, reward rates, and how easily you can redeem your points.
EMI (Equated Monthly Installment) Options: Simplifying Big Purchases
EMI has transformed the way Indians shop for big-ticket items. With an EMI option, you can convert a costly purchase—like a smartphone or TV—into manageable monthly payments, usually at favorable or even zero interest rates. EMI options are found both on credit cards and via point-of-sale finance at partner retailers.
Common Types of EMI Plans
- Credit Card EMI: Leading cards like HDFC, Axis, and SBI allow you to convert spends into EMIs instantly at checkout or later via app.
- No Cost EMI: Partner retailers absorb the interest, so your EMIs add up to the original product price—no hidden charges, just a processing fee sometimes.
- Merchant-financed EMI: Large stores and e-tailers like Amazon and Flipkart offer in-house EMI plans with bank tie-ups for easy approvals.
Watch out for processing charges and ensure you’re not paying more than the value received. Always check repayment schedules and any early closure penalties.
Buy Now Pay Later (BNPL): Instant Purchases, Flexible Repayment
BNPL is relatively new in India but catching on quickly, especially among younger consumers. This option lets you split purchases into small repayments, often with zero or low interest, without a physical card.
On major apps and e-stores, you might see brands like Simpl, Zest Money, or LazyPay listed at checkout. You can sign up quickly with minimal documentation. Amounts range from a few hundred rupees to larger sums for more eligible users, and repayment periods are typically 15–30 days, or up to a few months.
How BNPL Differs from EMI
- BNPL usually covers smaller purchases and offers shorter repayment terms.
- Credit checks are lighter, making it accessible to many first-time borrowers.
- EMI plans are mainly for bigger amounts and longer tenures.
BNPL can be especially helpful for emergency and routine purchases, but missing payments can attract late fees, so use them responsibly.
Why Are These Payment Options Booming?
- Convenience: Quick approval, easy sign-up, and digital management through apps.
- Younger Demographic: Millennials and Gen Z prefer flexibility and simpler onboarding over traditional credit.
- Personalization: Co-branded cards and BNPL programs offer brands a way to build deeper engagement with their core customers.
- Growing E-commerce: As online retail explodes, so do innovative credit solutions—and many cards now come with features like 5% cashback on online spends.
How to Choose the Right Option
- For Frequent Brand Shoppers: A co-branded card with high reward rates, like the Amazon Pay ICICI or Flipkart Axis.
- For Expensive Purchases: Prefer EMI from a trusted card issuer or merchant with transparent terms.
- For Emergencies or First Timers: BNPL with short tenure and small limits—pay off on time to boost your creditworthiness.
- Zero Annual Fee: Some cards give you flexibility at no extra yearly cost—consider HSBC Platinum Credit Card and compare options.
Check each product’s eligibility and interest structure. Using credit responsibly is key. Set reminders to repay EMIs or BNPL dues on or before the due date to avoid penalties.
Pros and Cons: A Quick Comparison
| Option | Pros | Cons |
|---|---|---|
| Co-branded Cards | High brand loyalty rewards, exclusive offers | Rewards restricted to partner, annual fees may apply |
| EMI Plans | Manage big spends, sometimes no cost EMIs | Interest or fees if not no-cost, commitment over several months |
| BNPL | Instant approval, helps manage routine or urgent spends | Short tenure; high late fees if not repaid on time |
FAQs on Co‑Branded Cards, EMI, and BNPL in India
- Will applying for co-branded cards affect my credit score?
Yes, just like any credit card, each application triggers a credit inquiry. Responsible usage, however, can help build your credit score over time. - Are there hidden charges in no-cost EMI plans?
No-cost EMIs should have no hidden interest, but be aware of possible processing fees or foregone upfront discounts. - Does BNPL appear on my credit report?
Some BNPL providers have started reporting to credit bureaus in India, so timely payments can help your credit history, but defaults may hurt your score. - How do I choose between a co-branded card and a general rewards card?
If you shop frequently with a specific brand, co-branded cards maximize value. Otherwise, compare credit cards here for more flexible, all-round rewards. - Are EMI and BNPL only available on credit cards?
No, some fintechs and merchants offer EMI/BNPL even on debit cards or directly from their platforms, widening access beyond just credit cardholders.
Conclusion & Next Steps
Co-branded credit cards, EMI, and BNPL are reshaping spending in India. While these options add choice and convenience, using them wisely is crucial to stay financially healthy. Always read the terms before you sign up, and compare credit card offers to find the ones that match your lifestyle and spending habits.
Looking for your next card or want to understand more about the latest credit card offers, cashback credit cards, or how to compare credit cards? Visit FinWitty.com for in-depth guides, expert reviews, and the tools you need to make smarter money decisions.