21 Nov 2023
Cred has already tied up with Axis Bank, and PhonePe is about to partner to provide Axis Bank’s credit cards on its platform.
Several fintechs like Cred are partnering with banks to diversify their portfolio, boost user engagement, and expand into other revenue generation modes. Cred is already offering Axis Bank credit cards on its platforms. Walmart-backed PhonePe is in the process of tying up with Axis Bank to take the plunge.
Such associations allow banks to access potential customers without spending much on lead generation and marketing. This trend could also pave the way for future co-branded card partnerships and enhanced options for credit card customers.
A fintech platform can earn a commission fee between ₹500 and ₹2,500 for every customer sourced. Banks intend to leverage platforms’ user engagement levels to generate quality leads. However, the new dynamics are expected to transform the commission-based models to trail incomes, which translate as additional income earned by fintech platforms according to the credit card usage and interest paid.