Foodtech giant Zomato and RBL Bank have announced the discontinuation of their partnership for co-branded Edition credit cards. Effective from May 15th, the Classic and Black Edition cards will become non-operational for users.
“We wish to notify that the partnership between RBL Bank and Zomato Limited, our co-brand partner for RBL Bank Edition Classic Credit Card and RBL Bank Edition Black Credit Card is getting discontinued,” the bank said in a statement.
After May 15th, users will no longer be able to access the card dashboard on the Zomato app as the co-branded Edition credit cards will no longer be operational. Instead, RBL Bank will issue a replacement credit card called the “RBL Bank Shoprite Credit Card.”
Starting May 15th, RBL Bank will begin dispatching the new ‘RBL Bank Shoprite Credit Card’ to replace the existing Zomato Edition cards. Users will be able to avail all the benefits of the new card from the same date, and any outstanding dues or ongoing EMIs will be transferred to the new card, as per the bank.
Until May 14, Zomato customers can redeem all their cash back on the food delivery platform, after which any remaining balance will be automatically transferred to the new card by May 30.
The co-branded Edition credit cards, previously offered by Zomato and RBL Bank, provided users with 5-10% cashback on all spending through Zomato and Blinkit apps. The cards also enabled users to manage their cards and track spending within the Zomato app. Additionally, users could avail a complimentary Zomato Pro membership and access major domestic airport lounges.
The partnership between Zomato and RBL Bank for co-branded credit cards, Classic and Black Edition, has ended after three years. The deal was signed in March 2018 with Mastercard, and while the exact number of cards issued is unknown, it helped Zomato increase user loyalty while RBL brought in new customers for its fintech products.
Curiously, in January, Citibank and fintech startup Paytm terminated their co-branded credit card partnership.
Zomato’s decision to end its co-branded credit card offering is noteworthy, especially as other Indian startups are increasing their focus on such partnerships. Just a month ago, HDFC Bank and Flipkart Wholesale collaborated to introduce a co-branded credit card exclusively for Flipkart Wholesale members.
Prior to this, Tata New also entered into a partnership with HDFC Bank to introduce a co-branded credit card available in two variants.
Furthermore, in the same vein, Zomato’s rival Swiggy was reportedly discussing potential partnerships with various banks for a comparable program last year. It is also worth noting that Coca-Cola purchased an undisclosed stake of 15% in Thrive, a direct competitor of Zomato, on the same day that Zomato terminated its partnership with RBL Bank.