SBI Cards see e-commerce share double to 45% in 1 yr

MUMBAI: SBI Cards - the credit card-issuing joint venture between the country's largest bank and GE Capital - has seen share of e-commerce in its total transactions double to 45% in the last one year.

The country's third largest credit card issuer is expecting online transactions to overtake physical ones (where cards are swiped) and has launched a dedicated card for online which gathers more rewards points. SBI Cards is offering SimplyCLICK which - through a strategic partnership with Amazon India, BookMyShow, Cleartrip, FabFurnish, Foodpanda, LensKart and Ola Cabs - will offer ten times the reward points of a regular card for a transaction with these merchants. For other online payments, cardholders will get five times the regular reward points.

Speaking to TOI, Vijay Jasuja, CEO, SBI Cards, said, "The number of online transactions has doubled from last year to around 45%. Even if our existing customers switch over, it will be beneficial for both. The cardholder gets higher rewards, and we get better spends." According to Jasuja, even online payment of utility bills would qualify for accelerated rewards as all online transactions are eligible for five times rewards.

On the possibility of new investors coming into the credit card joint venture following the imminent exit of GE Capital, Jasuja said, "There is no official position on that. Once there is something, we will make that public." He added that GE's exit will not have any impact on the Indian venture's working. "When the joint venture was set up, GE had brought in a lot of expertise. But during the last 14-15 years, all of this has been internalized and we have the skills required to run the business in-house."

SBI Cards had 32.4 lakh customers with nearly 82.8 lakh transactions, amounting to Rs 2,257 crore in May 2015. The company accounts for 15% of credit cards, 11% of card spends in India and 13% of all transactions. Jasuja said there is a clear trend where e-commerce spend is consistently increasing. "Now the festival season is approaching, which will be followed by marriage season, and we expect this to be good for spends," said Jasuja. He said that the company was working on increasing the scope for redemption of rewards. "We are also permitting conversion of reward points into cash where points are credited into the account with one reward point being equal to 25 paise," said Jasuja.