Do you order frequently on Zomato? If you do, would you want to own a credit card issued by Zomato? Yes, I know Zomato is not a bank and can’t issue credit cards. I am talking about a co-branded credit card. Zomato has launched a co-branded credit card, offered in tie-up with RBL bank. The credit card, as expected, offers benefits if you order on Zomato. And the benefits don’t end there. There is a whole host of additional benefits on dining out, online shopping and a birthday surprise.
In this post, let’s find out more about the card and see if there is merit in adding this credit card to your wallet.
You can apply for this card only from the Zomato app. If you are eligible, you will get an option in the app to apply for this credit card. I don’t know how eligibility is assessed. It may depend on how frequently you order or your usual mode of payment. For instance, if you usually pay for your orders using a credit card, this may help increase your chances of getting a card. The option to apply shows up in my app. And I do not order frequently from Zomato.
Such co-branded cards can sometimes put restrictions on where you can use the card. For instance, you get 5% cashback if you order from Zomato. Only 1.5% cashback if you order from Swiggy.
There is only one way to utilize Edition cash. You can use it to pay for your Zomato order or to pay at restaurants using the Zomato app. That’s quite restrictive.
Popular co-branded cards such as Amazon Pay ICICI Bank Credit Card or Flipkart Axis Bank Credit cards have similar issues. You can use the cashback on respective apps only. You CAN NOT use the amounts to set off the outstanding amounts on your credit card. However, you can use Amazon and Flipkart apps for many things apart from shopping. You can recharge your mobile, pay mobile postpaid. DTH or utility bills and book air tickets etc. You can use cashback to pay for all these things.
On the other hand, Zomato app is just about food, at least for now.
Zomato continues to offer cashbacks/discounts on other credit cards/modes of payment too. You may get a better payment offer on another credit card/payment instrument.
Zomato Edition Classic Credit card seems like a fine product. The cashback structure seems quite transparent. No caps on cashbacks. As mentioned above, you can use the cashback (Edition Cash) only for Zomato orders, which feels a bit restrictive since Zomato is just a food app. But it is also not a big drawback if you use the Zomato app frequently.
Maintaining an additional credit card is never easy. You must keep track of payment dates. A bigger problem is that you might end up spending more. However, if you are a frequent Zomato user or if you dine out frequently, you might find this card useful.
Deepesh Raghaw is a SEBI registered Investment Adviser and a management graduate from IIM-Lucknow. He writes for leading business publications regularly, runs a personal finance blog and a financial planning firm at www.PersonalFinancePlan.in. He can be reached at deepesh.raghaw[AT]gmail.com.
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