Hdfc Bank unveils co-branded credit cards with Shoppers Stop

HFC Bank and Shoppers Stop have announced the launch of a new range of co-branded credit cards for 80 lakh ‘First Citizen’ customers of the distribution chain with the bank’s customers.

Shoppers Stop has long had a co-branded card with Citibank. The tie-up with HDFC Bank came on a day when Citi announced the sale of its retail business to Axis Bank.

Parag Rao, Country Head of Consumer Credit, HDFC Bank, said: “The partners expect to onboard 10,000 new cardholders in three years. HDFC Bank currently acquires 12% of its customers through co-branding, but expects that number to grow to 35% in three years. He said the tie-up was part of the bank’s comeback strategy after facing an eight-month ban on issuing new cards.

“The bank was in talks for a partnership with a telecom player and a large conglomerate to issue a co-branded card. On the likelihood of industry consolidation following the sale of Citi’s card business. I expected the number of issuers as well as the number of credit cards in the country to increase and there would be no streamlining of the numbers despite Citibank exiting. he added.

The credit cards will be available in two categories, Shoppers Stop HDFC Bank Credit Card and Shoppers Stop Black HDFC Bank Credit Card. The first category offers 6 Shoppers Stop points (SSP) on private labels at Shoppers Stop, 2 SP on spending on other Shoppers Stop brands and outside (excluding fuel and wallet) without any cap.

Customers can redeem their points at Shoppers Stop outlets while shopping. Annual milestone benefits include SP 2,000 on expenditure of Rs 2 lakh per year and 1% fuel surcharge waiver at all fuel stations across India up to Rs 250 per month.

Venu Nair, CEO and MD, Shoppers stop said: “Consumer spending has increased, as has customer service associate footfall in our stores. Our cards co-branded with HDFC Bank will bring unparalleled benefits to our “Citizen First” members. They will be able to take advantage of discounts and offers offered by the bank and redeem points in our stores.

Black card holders get 20 SSP on private brands on Shoppers Stop, capped at 2,000 SSP per month, and 15 SSP on all other Shoppers Stop brands, including premium brands, capped at 2,000 SSP per month . Premium cardholders will enjoy 1% fuel surcharge waiver at all petrol stations across India up to Rs 500 per month.

READ MORE: Shoppers Stop simplifies the post-purchase journey

Premium cardholders will also have access to airport lounges across India, for up to four domestic and two international journeys per quarter. The card would also provide cover for accidental death by air worth Rs 3 crore, lost card liability up to Rs 9 lakh and cover for emergency hospitalization abroad up to Rs 50 lakh.