Samsung launches credit cards in partnership with Axis Bank

Samsung has recently introduced two new credit cards in India, marking its entry into a highly competitive market that is already dominated by over 50 other companies vying for consumer attention in the world's second largest internet market.

Samsung has announced its entry into the competitive Indian credit card market through a partnership with Mumbai-based Axis Bank and global payments processor Visa. The partnership has resulted in the launch of the Samsung Axis Bank Credit Card, which will offer consumers a 10% cash back on purchases of Samsung products and services made through the card. There is a monthly cap of 2,500 Indian Rupees for the Signature card and the Infinite card extends that limit to 10,000 Indian Rupees. The yearly cash back is capped at 10,000 Indian Rupees for the Signature card and 20,000 Indian Rupees for the Infinite card.

Samsung has announced the launch of two credit cards in India, in partnership with Axis Bank and Visa. The cards, referred to as the Samsung Axis Bank Credit Card, are aimed at providing consumers with 10% cashback on purchases of Samsung products and services, with a monthly cap of INR 2,500 ($31) for the Signature card and a yearly cap of INR 10,000 ($123). The Infinite card extends the monthly cap to INR 10,000 and the yearly cap to INR 20,000. The South Korean technology giant aims to target consumers in smaller cities and towns with the new offering and will also offer attractive financing options to its customers. Although the credit card market in India is already highly competitive, the potential is still significant as only a small portion of the nation's population currently holds a credit card. Customers will have access to rewards and exclusive deals from leading local firms, including Zomato, Myntra, Tata's 1mg, Bigbasket, and Urban Company.

The recent launch of Samsung's credit cards in India highlights the trend among smartphone manufacturers to expand their offerings. Xiaomi, a leading smartphone company in the country, established a payment service using the Unified Payments Interface (UPI) in India in 2019 and began providing loans to customers last year. In comparison, Samsung introduced its UPI-powered payment service, Samsung Pay, in India in 2017.

The partnership between a bank and a brand in the creation of co-branded cards can be advantageous for all parties involved. Power users of the brand are able to receive increased benefits as they increase their spending, resulting in higher brand loyalty. Meanwhile, the bank benefits from access to a new customer base, as customers are acquired through the brand or its loyal users.

The Samsung Axis Bank Credit Cards will have an annual fee of $6.13 for the Signature card and a charge that is 10 times greater for the Infinite card, prior to the application of taxes. The company has announced that it will soon commence the process of accepting applications from interested customers.