Mukesh Ambani, the spearhead of Reliance Industries, and renowned as Asia’s wealthiest magnate, is steering his empire into the flourishing realm of online retail and financial services. The latest venture under the Reliance banner is, reportedly, a collaborative effort with the State Bank of India (SBI), aiming to launch co-branded credit cards, marking a significant stride into India’s burgeoning credit card market.
This collaborative venture between Reliance and SBI is set to introduce two co-branded credit cards under the moniker ‘Reliance SBI Cards’. These cards will operate on the Indian indigenous RuPay network, as disclosed in a report by TechCrunch.
The ‘Reliance SBI Card’ is tailored to extend “exclusive” perks to its cardholders. The bouquet of benefits includes vouchers for Reliance Retail, which is Mukesh Ambani’s retail venture, along with discounts on various Reliance offerings like JioMart, Ajio, Urban Ladder, and Trends.
In a transient reveal, SBI showcased the cards on its website, which was later taken down. Last year, the Indian credit card market witnessed transactions soaring to a staggering Rs 1,33,000 crore, showcasing a stark contrast to the debit card market which logged transactions worth Rs 53,000 crore.
These credit cards are a testament to Ambani’s escalating influence in the financial sector, following the recent foray of Jio Financial Services into lending and insurance domains. The financial arm also harbors plans to unveil debit card offerings, marking a holistic approach to catering to India’s financial market.
The venture into the credit card business by Reliance is timely, coinciding with a period when other Indian conglomerates and firms are also exploring this lucrative market. For instance, the Tata Group, with its Tata Neu credit cards in association with HDFC, has made notable inroads. Other firms like Paytm, Zomato, Swiggy, and Ola have also launched their versions of co-branded credit cards, aiming to diversify revenue channels and foster customer loyalty.
This venture also mirrors a broader trend wherein businesses are leveraging co-branded credit cards as a mechanism to enhance customer engagement, optimize the utilization of customer data, and stimulate expenditure, while concurrently navigating the challenges of traditionally limited credit ceilings that have distanced top-spending clientele.