Indian ride-hailing company Ola is getting into the credit card business, teaming up with SBI Bank in India and Visa to launch a credit card.
According to a report in TechCrunch, citing the companies, the plan is to issue as many as 10 million credit cards during the course of the next several years. Visa and SBI will get access to more Indian customers. Its a market that still uses cash but is increasingly adopting digital payments.
For Ola, which is the leading ride-hailing service in India, the move presents another way to make money off its 150 million users. Users take more than 2 million rides daily using the Ola platform, according to the report. As a result, Ola has a ton of data on users. The credit card, which is being called Ola Money-SBI Credit Card, provides users with discounts on rides in an effort to maintain its loyal customer base, noted the report.
In an interview with the news outlet, Ola boasted rewards on its credit card that will be the highest in the industry. The company said rewards can be used for Ola ride, flights and hotel bookings. The company is offering 7 percent cash back on cab purchases, 5 percent cash back on flights and 20 percent on domestic hotel bookings. Users also get 20 percent rewards on more than 6,000 restaurants. All other purchases get 1 percent cash back.
The card is a first of its kind offering that can be managed digitally through the Ola App. “We are committed to creating an inclusive ecosystem where mobility and financial services go hand in hand in leading growth and development,” said Nitin Gupta, CEO of Ola, in the interview. “Mobility spends form a significant wallet share for users and we see a huge opportunity to transform their payments experience with this solution. With over 150 million digital-first consumers on our platform, Ola will be a catalyst in driving India’s digital economy with cutting edge payment solutions.”
Ola isn’t the only Indian company to enter the credit card market this week. On Tuesday (May 14), India-based digital payments company Paytm announced a partnership with Citigroup to launch a credit card. The Paytm First Card will give Indian consumers 1 percent cash back on all transactions.