Airtel spurts 3% after announcing partnership with Axis Bank to bolster India's digital ecosystem

7 Mar 2022 , 03:06 PM

Bharti Airtel Limited, India’s premier communications solutions provider, and Axis Bank, India’s third-largest private sector bank, today announced a strategic partnership to strengthen the growth of India’s digital ecosystem through a range of financial solutions.

The company said in a filing that in a bid to accelerate the adoption of digital payments in the country, over the coming months, Airtel and Axis Bank will bring to market a range of innovative financial offerings and digital services exclusively for Airtel’s 340 million plus customers.

These will include co-branded credit card with industry-leading benefits, preapproved instant loans, Buy Now Pay Later offerings and many more. The alliance, with its significant reach across the country will help penetrate tier 2 and tier 3 markets by enabling higher adoption of digitized payments.

At around 3.00 pm, Bharti Airtel Ltd was trading at Rs672.55 per piece up by Rs19.55 or 2.99% from its previous closing of Rs653 per piece on the BSE.

Axis Bank Ltd was under pressure, trading at Rs665 down by Rs50.15 or 7.01% from its previous closing of Rs715.15 on the BSE.

The partnership was kicked-off today with the launch of the first-of-its-kind ‘Airtel Axis Bank Credit Card’ that will offer a host of attractive benefits such as cashbacks, special discounts, digital vouchers and complimentary services to Airtel customers.

Airtel Axis Bank Credit Card users will enjoy exciting rewards on their card spends:

• 25% cashback on Airtel Mobile/DTH recharges, Airtel Black and Airtel Xstream Fiber payments
• 10% cashback on Electricity/Gas/Water bill payments via Airtel Thanks app
• 10% cashback on spends with preferred merchants - BigBasket, Swiggy, Zomato
• 1% cashback on all other spends
• Amazon e-Voucher INR 500 on card activation within 30 days of issuance
• This credit card will be exclusively available for eligible Airtel customers through a seamless digital journey on the Airtel Thanks app.

Additionally, Axis Bank will leverage Airtel’s suite of digital services such as its C-PaaS platform - Airtel IQ which spans voice, messaging, video, streaming, call masking and virtual contact center solutions, to enhance digital capabilities. Axis Bank will also use various cyber security services from Airtel. Going forward, the companies will further explore collaborating across Cloud and Data Center services.

Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel said: “Airtel is building a formidable financial services portfolio as part of its endeavor to offer world-class digital services to its customers. We are delighted to join forces with Axis Bank in this exciting journey. Through this win-win telco-bank partnership, Airtel customers will get access to Axis Bank’s world-class financial services portfolio and exclusive benefits, while Axis Bank will benefit from Airtel’s strong digital capabilities and deep distribution reach.”

Commenting on this partnership, Amitabh Chaudhry, MD&CEO, Axis Bank said, “At Axis Bank, we are constantly striving to enhance value for our stakeholders. This one of its kind collaboration will help widen the access to credit and various digital financial offerings from Axis Bank for Airtel’s 340 million customers.

On the other hand, we will leverage Airtel’s widespread reach and services ranging from mobility and DTH to utility bill payments offering our customers the opportunity to maximize value, while also aiding the digital economy exponentially.”