Ola, Flipkart to launch credit cards soon, says report

Cab aggregator Ola and e-tailer Flipkart are looking to launch credit cards in partnership with large banks which will give the firms an idea on the spending pattern of users, The Economic Times reported.

The cab-hailing firm will launch a credit card in partnership with the State Bank of India (SBI) and begins pilot next week, sources told the paper, adding that the firm is looking to issue 1 million cards in the first year.

The firm is betting big on credit-based payment as the next gateway for digital payments, people familiar with the matter told ET.

The credit cards will be structured in such a way that the tech firms will be able to back-calculate the spending pattern of their customers, the sources said, adding that Ola is also likely to introduce a rewards programme.

The report further added that Flipkart and Ola will build their own credit underwriting model that will utilise their customer data to evaluate and offer the credit card service to those who don't have to pay past dues.