NEW DELHI : The Federal Bank announced on Wednesday that it has partnered with financial technology company OneCard to launch a mobile credit card.
The launch takes place before the holiday season, as the Federal Bank aims to capitalize on consumer credit demand, which is expected to peak around the holiday season due to the economic recovery.
The credit card will be issued through the OneCard app in under three minutes, according to the company, and can be activated and used instantly in virtual format until the physical card is delivered.
Users can control their cards through the app, from tracking spend and rewards to setting the transaction limit on the card and more.
Federal Bank’s target user base for this offering is young working professionals between the ages of 23 and 35, according to the bank.
“This digital native cohort is open to experimenting with new applications and has considerable disposable income. Millennials and Generation Z alone make up over 35% and 27%, respectively, of India’s population, according to Deloitte’s latest report. Federal Bank with its mantra “Digital at the Fore and Human at the Core” aims to become the most admired bank of all stakeholders and with the launch of this mobile credit card the bank may be on the verge of make inroads into this area. segment, ”the bank said in its press release.
The demand for credit cards has grown steadily over the years. Credit card spending grew at a compound annual growth rate (CAGR) of 25% from fiscal 2016 to fiscal 2021 and is expected to reach ??$ 15 trillion in total credit card spending for fiscal year 2024, according to data from the bank.
“The credit card is a highly interactive financial product and at OneCard we aim to overhaul its value proposition by delivering a highly technological personalized experience,” said Anurag Sinha, Co-Founder and CEO of OneCard.
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