SBI Card has introduced the 'Eternal SBI Card' in partnership with Eternal (formerly Zomato) to tap into the high-frequency food delivery and quick-commerce market. The card offers discounts on Zomato, Blinkit, and partner apps like Uber and Apollo 24|7. This move helps the lender target digital-native consumers, though investors will monitor whether such partnerships drive profitable spending or increase credit risk in the competitive retail lending space.
SBI Card is expanding its retail footprint by partnering with Eternal (the company formerly known as Zomato) to launch the 'Eternal SBI Card.' The new offering is specifically designed to attract users of the Zomato and Blinkit apps. By embedding credit options directly into these popular platforms, the lender aims to capture high-frequency spending from customers who are already active in the digital ecosystem.
The product features a tiered rewards system aimed at encouraging frequent transactions. It carries an annual fee of Rs 499, which is waived if the cardholder reaches an annual spending threshold of Rs 2 lakh. Benefits include a 10% discount on Zomato, District, and specific electronics and beauty items on Blinkit, along with 5% cashback on partner brands such as Uber, Apollo 24|7, and ixigo. The card is available on both the Mastercard and RuPay networks, allowing for wide acceptance.
For SBI Card, this partnership is a strategic move to lower the cost of finding new customers by leveraging the existing user base of a digital platform. This is a common strategy in the Indian credit card industry, as banks try to compete with large private sector lenders that often bundle credit cards with banking relationships. However, the Indian credit card market remains highly competitive, with multiple players vying for a share of the growing digital-savvy consumer segment.
While co-branded cards can help grow the number of cards in force, they bring specific business considerations. The Reserve Bank of India has maintained a close watch on the rapid growth of unsecured retail loans, which includes credit card debt. Investors typically monitor how effectively a lender manages the credit quality of these new customers. Because many of these users are acquired through digital platforms, the bank's ability to assess their repayment capacity accurately is a factor that determines the long-term profitability of such a partnership.
The rollout is scheduled to begin on October 22, with applications available via the Zomato, Blinkit, and District apps. Moving forward, the key factor for investors will not just be the number of cards issued, but whether these users remain active and spend enough to justify the costs of customer acquisition and reward payouts. Market participants will likely watch the company’s quarterly updates to see if this partnership drives a meaningful increase in spending per card and whether it affects the overall asset quality of the credit card portfolio.