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Indian fintech firm eyes co-branded card revenues to triple by 2028
Co-branded credit cards are expected to drive significant growth in India’s credit card market, according to a new whitepaper released by Zeta, a banking technology firm based in India.
The report projects that revenues from co-branded credit cards will triple by FY2028, rising from about ₹17,000–19,000 crore (US$2–2.3 billion).
India’s total credit card count surpassed 111 million by mid-2025, but penetration remains below 8 cards per 100 people.
Zeta’s study highlights that co-branded cards account for 18% of total card spending, and have lower acquisition costs and higher activation rates compared to generic cards.
Growth is expected to be led by Tier-2 and Tier-3 cities, and new spending categories such as healthcare and rural brands.
The report notes that operational and technology challenges, rather than lack of demand, are the main barriers to scaling co-branded card programs.
🔗 Source: Zeta
🧠 Food for thought
Implications, context, and why it matters.
RBI co-branding rules add compliance costs and slow CBCC scale
- The Reserve Bank of India (RBI) Master Direction limits co-branding partners to marketing and distribution without transaction data access 1. An issuer may display transaction details on the partner platform in encrypted form for the cardholder only with no Co-branding Partner (CBP) access or storage 1.
- Issuers are liable for partner conduct under co-branded deals, so banks handle due diligence and monitoring 1. Customers must give explicit consent before issuance 1 and receive at least 30 days of notice for any term change 1.
- Account closure must finish within seven working days, with a ₹500 per calendar day penalty for delays when no dues exist 1.
Mid-tier brands and healthcare offer near-term CBCC openings
- Vendors can target Tier-2 and Tier-3 cities and healthcare networks. Offer a turnkey co-branded credit card (CBCC) stack with Know Your Customer (KYC) automation and a loyalty engine. Add onboarding, reconciliation, and compliance to cut timelines from months to weeks.
- System integrators (technology consultancies that implement and connect enterprise software) can map issuer–brand pairs to find open categories in regional retail, hospital, agri-business.
- RBI approval is not needed to launch co-branded credit cards, and banks plus Non-Banking Financial Companies (NBFCs) can be co-branding partners without prior approval, subject to the stated conditions 1. Vendors that solve data isolation (preventing brand access to cardholder data), automated rewards reconciliation, and fast program setup can help banks launch 5 to 10 co-brands at once.
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