Benefits Of Co Branded Cards

Co Branded Card is defined simply a debit or credit card issued by a bank jointly with a financial organization and a credit card company. It is immensely popular for establishing standard branding of an organization. There are different types of Co branding namely Ingredient Co branding, Same Company co branding, joint venture co branding and Multiple Sponsor Co branding. These different types vary based on the purpose of co branding. Unlike other marketing techniques, Co-branded cards initiate the usage of products or services by its customers in a consistent manner. Cobranded cards serve for three purposes

1.Benefits Customers :
Percentage of customers opting Debit card for purchases is increasing day by day. This statistics led to the origin of Co branded Cards which is analogous to a prepaid card. The card holders or the customers open an account with the mentioned bank and start spending their money from their account. Difference in using this card is that they receive discounts, offers and various other points on each purchase they make in the respective organizations which provided the Co branded debit card. In addition, the card minimizes the risk of scammers. For Instance, ABN AMRO MakeMyTrip Go Card allots three reward points for RS 100 used while booking. The earned points that range from 10 to 30 can be converted into cash in your account.

2.Benefits Business Entity:
Business organization easily creates a strong customer relationship and builds loyalty. The business name or logo embossed on the card generates a brand presence. The spending habit of a customer is well predicted with the help of Cobranded cards. From this information, the most used service by the customers is identified and less used services are upgraded. These cards eliminate the fear of fraudulent since it works in affiliation with Bank and credit card providers that has universal acceptance. Launching a new program does not incur huge expense. In Co branded card, the operational cost and overall expense is fairly low.

3.Benefits Bank & Credit Card Company:
Banks and Credit Card providers also spread their ads wherever these cards are scratched. They enjoy huge profit from the interest rate imposed on purchases. The impression developed by the card amidst the customers also creates an impression on the banks and credit card providers like MasterCard or VISA and entrust them for further transaction. In all case, the prepaid card program must gain the interest and trust from the users for effective branding.

Co-branding has serious advantages though it may look one among the marketing technique initially. It has benefits like risk-sharing, standard income generation and combined advertising. Looking closer, the trust that a customer has in the bank that collaborates in joint advertising may eventually spread to the product also. In wide extent, Generic card program offers technological benefits and financial benefits by the legal agreement. Since it is a joint venture product of a financial organization, bank and a credit card company, negative branding adversely affects the global brand equity.