Each card caters to different customer segments and the bank uses different parameters to segment the applicant, including age, income, and lifestyle
IDFC First Bank, which recently launched its credit card business, is offering four different cards. Each card caters to different customer segments. The bank uses different parameters to segregate applicants, including age, income, and lifestyle.
Some features are same across the cards. For example, each card's interest rates start at 9% and go up to 36%. There will be no interest on cash withdrawal if the customer repays on time.
All cards will be life-time free and come with a higher reward points programme than most other cards in the market if the customer spends over ₹20,000.
IDFC First Bank will initially offer the cards to its customers. For others, it will start accepting applications around April onwards.
Let's look at the cards in details.
The entry-level card, FIRST Millennia, is targeted at digital-savvy consumers, who have active online spends. Typically, such individuals are between 21 and 35 years, earning up to ₹12 lakh a year. Their job profile is between junior and middle management.
FIRST Millennia cardholders will get a ₹500 welcome gift voucher on spending ₹15,000 within 90 days on the card set-up. The privileges include 25% discount on movie tickets up to ₹100 once a month.
They will also get four complimentary railway lounge visits every quarter and up to 15% and 20% discount for spends at partner health and fitness outlets and restaurants, respectively.
The second card, FIRST Classic, targets those who use credit cards, usually, for household purchase and paying bills. These are, typically, those above 35 years and earn over ₹12 lakh a year. The privileges on the card are similar to FIRST Millennia.
The top two cards that the bank offers are FIRST Select and FIRST Wealth.
The FIRST Select is targeted towards those in the middle to senior management and earn between ₹15 lakh and ₹35 lakh. Such customers usually seek a card that is high on rewards and privileges with wide redemption options.
Among other privileges, customers who own FIRST Select buy one get one offer on movie tickets of up to ₹250 per ticket twice every month. They will also get four complimentary domestic airports and railway lounge every quarter.
On the other hand, FIRST Wealth customers get four complimentary domestic and international airport lounge and spa visits every quarter and the same number of free visits at railway lounges.
The top tier card is targeted towards individuals in top roles such as senior vice presidents and directors in a company with over 35 lakh income.
All four cards also come with different insurance covers depending on the customer profile. For example, FIRST Millennia comes with a personal accident cover of ₹2 Lakh and lost card liability cover of ₹25,000.
FIRST Wealth customers get a higher sum assured and more insurance covers. The card has an air accident cover of ₹1 crore, personal accident cover of ₹10 Lakh, lost card liability cover of ₹50,000 and comprehensive travel insurance cover of $1,200.
Insurance covers on cards are subject to conditions. For example, they may require at least one transaction in the previous month to be valid in the next one.