Whalesbook
Unity Small Finance Bank and BharatPe have launched a new credit card featuring automatic EMI conversion for eligible purchases and UPI payment capabilities. Federal Bank has also enhanced its festive offerings with 'Weekends With Federal,' providing discounts on various categories. These moves coincide with increased consumer spending anticipated during the festive and wedding seasons.
As consumer spending gears up for the festive and wedding seasons, financial institutions are actively enhancing their product offerings. Unity Small Finance Bank, in collaboration with BharatPe, has introduced the Unity Bank BharatPe Credit Card, built on the RuPay network. This card automatically converts qualifying high-value purchases into Equated Monthly Instalments (EMIs) and allows for penalty-free early closure of these EMIs. Notably, the card comes with no joining, annual, or processing fees. Users can also link the card to their UPI via the BharatPe app for QR-code and handle-based payments using their credit limit. Rewards are applicable on both card and UPI transactions. The card also offers complimentary domestic and international lounge access without any minimum spending requirements and a fully digital onboarding process.
Separately, Federal Bank has launched 'Weekends With Federal,' a program offering recurring discounts from Friday to Sunday for its debit and credit card customers. These offers span categories such as food delivery, quick commerce, apparel, electronics, dining, and entertainment, with discounts ranging from 5% to 10% based on the merchant and product. Key partners include Swiggy, Swiggy Instamart, EazyDiner, Croma, Ajio, and Zomato District. The bank has published detailed terms and conditions on its website.
Impact:
This news indicates intensified competition within the banking and fintech sectors, particularly around credit card features and merchant partnerships. The focus on EMI-linked products and UPI integration reflects evolving consumer payment preferences and the drive to capture market share during peak spending periods. These initiatives are likely to stimulate credit card adoption and digital transaction volumes, potentially boosting revenue for the involved entities and positively influencing consumer sentiment towards retail spending.
Rating: 7/10
Difficult Terms:
Equated Monthly Instalments (EMI): A fixed amount paid by a borrower to a lender at a specified date each calendar month. EMIs are used to pay back both interest and principal on a loan or credit card debt over time.
Unified Payments Interface (UPI): An instant real-time payment system developed by the National Payments Corporation of India (NPCI) for inter-bank peer-to-peer and person-to-merchant transactions.
RuPay: An Indian multinational financial services and payment service network. It was conceived and launched by the National Payments Corporation of India (NPCI).
Digital onboarding: The process of opening an account or signing up for a service entirely online, without the need for physical paperwork or branch visits.
