Co-branded cards that are co-issued by commercial banks and other businesses in Vietnam are, reportedly, outpacing traditional credit cards, which are getting saturated, according to VietNamNet Bridge.
In 2013, the country witnessed availability of nearly 20 such co-branded credit cards in the market, which were co-issued by banks, retailers, air carriers, schools or football clubs.
Some of them include cards issued by retailer Co-op in association with Vietcombank, BIDV and Dona A Bank; Vietnam Airlines and Techcombank Visa; Vietnam Airlines and VP Bank Platinum MasterCard; Bac A Bank and TH True Mart; BIDV and Lingo Card; Visa Debit Vietinbank and Otofun; Visa Debit Vietinbank- Webtretho; and Sacombank- Sony Visa or BIDV- Manchester United.
The co-branded cards allow bankers cooperating with retailers to approach their existing clients, thus reducing the expenses on card issuance and management.
Similarly, businesses that cooperate with banks in sharing client database and developing the payment through banks can get the banks’ support in the client information management, transaction and cash flow management.
Additionally, most of the banks are offering 5-10% discounts to clients holding the cards issued by business partner, thus boosting sales of manufacturers and retailers.