AU Small Finance Bank, Zaggle launch co-branded credit card with Zagg Coins rewards

The lenders rolled out a retail co-branded credit card on Visa and RuPay networks, offering Zagg Coins convertible to cashback across UPI and contactless spends. The product features milestone-based cashback and subscription-driven Value Passes targeting everyday retail spending.

— Source publishedThu, 9 Jul, 2026, 22:33 IST·First seen Thu, 9 Jul, 2026, 22:43 IST·Source The Hindu BusinessLine

What happened

AU Small Finance Bank and Zaggle launched a co-branded retail credit card on Visa and RuPay, offering Zagg Coins-to-cashback rewards across UPI and contactless

Why this matters

This partnership deepens the AU-Zaggle distribution tie-up and signals appetite for further fintech co-branding deals targeting UPI-linked and subscription-driven consumer spending.

What to watch

  • Card issuance/activation numbers in AU SFB quarterly disclosures
  • RBI/NPCI moves on RuPay-UPI credit MDR economics
  • Zagg Coins redemption rates and reward liability accruals
  • Competitive co-brand launches with similar UPI+contactless coverage
  • Value Pass subscription attach and renewal rates
  • Zaggle expands B2B2C distribution leveraging its expense/rewards SaaS base to cross-sell the card
  • AU SFB bundles card with savings/deposit acquisition funnels to deepen retail liability book
  • Competitors respond with matching UPI-linked cashback and lifestyle Value Pass equivalents
  • Iterate reward tiers and merchant partnerships to sharpen everyday-spend positioning