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Axis Bank Revamps Airtel Card Benefits
Axis Bank is making major changes to its co-branded Airtel Axis Bank Credit Card, rethinking its rewards and customer benefits. Starting April 12, 2026, cardholders will see a new approach to benefits, aiming to link rewards more closely with how much the card is used and to boost engagement within certain partner services. This comes as the Indian credit card market, after rapid growth, is now seeing slower spending increases.
New Variable Cashback Structure
Before, cashback on Airtel mobile, broadband, and utility payments through the Airtel Thanks App had a fixed monthly limit of ₹250 per category. Now, these limits will change based on spending. For 25% of your Airtel telecom spending, the cashback cap will be double the base cashback earned in a statement cycle. For 10% cashback on Airtel utility payments, the cap will match the base cashback amount. Moving from fixed, predictable rewards to variable, spending-linked caps is a way for the bank to manage costs. This ensures that the value of rewards issued is more closely tied to how much a customer spends overall. Axis Bank has adjusted benefits on its credit cards before.
Shift to Partner Wallet Credits
A significant change involves discontinuing the current 10% cashback on popular food and grocery apps like Swiggy and Zomato. Instead, customers will receive a 10% 'value back' on select online purchases with Zomato, Blinkit, and District Movies. This 'value back' will be added to partner wallets, usable for future orders on those platforms, not as statement credit. This method encourages customers to keep using these specific services. The new benefit offers up to ₹200 value back per partner each month and requires a minimum spend of ₹499 on Zomato and Blinkit, not counting wallet reloads or gift card buys.
Airport Lounge Access Removed
Along with the reward changes, Axis Bank is ending free domestic airport lounge visits for Airtel Axis Bank Credit Card holders. This removes a valuable travel perk, often a key feature of premium cards. While other Axis Bank cards offer lounge access, it usually comes with spending requirements or a set number of visits. Ending this perk for the Airtel card signals a move to cut costly benefits and sharpen the card's main appeal.
Market Trends Drive Card Updates
Axis Bank operates in a crowded Indian credit card market. The bank, with a market value around ₹4.1-4.2 lakh crore and a P/E ratio near 15.5x, actively adds new customers, bringing in about 0.7 to 1.06 million credit cards quarterly. Yet, recent spending growth has slowed. These changes to the Airtel card align with industry efforts to make reward programs sustainable and prevent customers from exploiting them. While rivals offer more rewards on partner brands, Axis Bank's move to wallet credits and dropping lounge access shows a specific strategy for this card. Success will depend on how well customers adapt to the new rewards and if the Airtel partnership remains attractive in a market that increasingly favors tailored, ecosystem-focused benefits over general cashback or top-tier perks.