Ola and Flipkart are ready to launch credit cards in partnership with several large banks in India. It is said that these companies are making this move to get insights about the spending patterns of its card users. Ola is set to launch its credit card later next week in partnership with the State Bank of India (SBI). A source cited that Ola plans to issue one million cards in the first year using its 150-Million customer base.
The terms of the partnership between the bank and the company differ. Hence the banks will look into risk analysis, card issuance, payment processing, credit line management, and statement processing. While the merchant partners will control marketing, promotions, and discounts. It has been cited that Flipkart and Ola are building their own underwriting model that will help to evaluate and offer credit to the customers who do not have any credit history.
Source: Economic Times