Co-Branded Cards: Are You Actually Earning Real Rewards?
AU Small Finance Bank and Zaggle have launched a new co-branded credit card with cashback on UPI and tap-to-pay spends. Before you apply, here's what you need to know about how rewards cards actually work — and when they're worth it.
The average Indian earns ₹4,000+ in card rewards yearly but redeems less than half — that's 2 months of chai money gone.
Most Indians never redeem their credit card points before they expire
Key Takeaways
Compare the annual fee against your estimated monthly spend — a card only pays off if yearly rewards exceed what you pay in fees.
Check whether UPI-linked card spends actually qualify for rewards on any card you own — many banks quietly exclude UPI transactions from cashback.
Set a calendar reminder every 6 months to log in and redeem accumulated points before they expire or lose value.
AU Small Finance Bank and Zaggle have launched a new co-branded credit card with cashback on UPI and tap-to-pay spends. Before you apply, here's what you need to know about how rewards cards actually work — and when they're worth it.
Here's what happened: AU Small Finance Bank and Zaggle partnered to launch a co-branded credit card with a coin-based rewards system convertible to cashback.. The card offers higher cashback rates on UPI-linked spends and contactless tap-to-pay transactions — two of India's fastest-growing payment habits.. Cardholders can choose customizable benefit passes to personalize rewards categories, a feature uncommon in standard Indian credit cards..
What you should do: Compare the annual fee against your estimated monthly spend — a card only pays off if yearly rewards exceed what you pay in fees.. Check whether UPI-linked card spends actually qualify for rewards on any card you own — many banks quietly exclude UPI transactions from cashback.. Set a calendar reminder every 6 months to log in and redeem accumulated points before they expire or lose value..
Co-branded cards often give the best rewards in the first 3 months as a welcome bonus — apply only when you have a big planned purchase to maximize that window.
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- [1]“AU Small Finance Bank and Zaggle launch co-branded retail credit card with flexible rewards” Latest Money & Banking, Financial News Today - news | The HinduBusinessLine · 9 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.