Zomato ends co-branded credit card partnership with RBL Bank
Deepinder Goyal-led Zomato inked a partnership with RBL Bank in March 2020 to launch Editon credit cards to get a million cardholders on board over two years.
Zomato has ended its partnership with RBL Bank for its co-branded Edition credit cards. Users can no longer use their Edition credit cards, both Classic and Black, starting May 15.
Meanwhile, RBL Bank will replace existing cards with the RBL Bank Shoprite Credit Card without charging an annual fee, the bank informed users over an email. YourStory has seen a copy of the email.
Existing Edition cardholders will receive the replacement card by May 15, 2023, to their registered address, and all outstanding dues and ongoing equated monthly instalments (EMI) will be transferred into the new card once it is activated, the bank said.
Moreover, users need to redeem cashback and rewards earned on Edition cards by May 14, 2023. The dashboard will not be accessible on the app after this date. However, outstanding cashback will be credited to the Shoprite card by May 30, 2023.
"In case you have paid an annual/renewal fee on your Edition Card post May 1, 2022, it will be reversed into your Edition card account by May 10, 2023," RBL Bank wrote in the email.
YourStory has reached out to Zomato for a comment on the development.
Zomato inked the co-branded card partnership with the Mumbai-based private bank and Mastercard in March 2020 and introduced two types of credit cards—Classic and Black. The Classic card offered 5% cashback on every transaction made on the Zomato and Blinkit apps, while the Black credit offered 10% cashback.
Users also gained access to Zomato Pro membership, access to all major domestic airport lounges, and free plus one on movie tickets. The card was initially tagged as a premium, invite-only programme.
The firms aimed to clock a million users over two years. "This is the first-of-its-kind co-branded card, which is centred around food experiences. We are aiming to have one million cardholders in the next 24 months," Utkarsh Saxena, Head Products-Credit Cards, RBL Bank, said in March 2020.
It is unknown how many cards were issued in the last three years.
A co-branded card is a partnership programme between a merchant and a bank to reward users for transactions and an easy way to ensure customer loyalty.
For Zomato, the deal with RBL Bank enabled it to retain its 17.4 million monthly active users by offering free membership plans and attractive cashback. For RBL Bank, it was an easy way to expand its pool of cardholders.
Several firms have opted for the co-branded credit card route to widen their user base. Amazon, too, has partnered with ICICI Bank, while Walmart-owned Flipkart offers co-branded cards with Axis Bank. Zomato rival , too, was in talks with several banks for a similar programme, according to media reports.
Edited by Suman Singh