The co-branded credit card space has a new entrant.
AU Small Finance Bank and Zaggle have unveiled a new retail credit card designed around how most people spend every day—whether that’s tapping their card, paying via UPI, shopping online, or filling up at the fuel station.
Rather than focusing on airline miles or hotel points, the card rewards users with Zagg Coins, which can be redeemed as cashback.
What’s on Offer?
The AU Zaggle Credit Card comes with rewards across multiple spending categories:
• Up to 8% Zagg Coins on contactless Visa card payments
• Up to 8% Zagg Coins on UPI transactions using the RuPay variant through the zagg.money app
• Up to 4% Zagg Coins on eligible e-commerce spends
• 1% fuel surcharge waiver on eligible fuel transactions
• Zagg Coins can be redeemed as cashback, with the cashback credited directly to the linked credit card account via the zagg.money app.
Why This Is Interesting
A card built around today’s payment habits.
Most new-age users don’t rely on just one payment method. They tap their cards at stores, use UPI for daily payments, and shop online regularly.
By rewarding contactless payments, UPI, and e-commerce under a single product, AU and Zaggle are targeting exactly this spending behaviour.
UPI rewards continue to gain momentum.
With more banks launching RuPay credit cards for UPI, issuers are increasingly competing on rewards rather than just enabling UPI payments. Offering up to 8% back makes this card stand out—though the actual reward value will depend on the detailed terms, eligible merchants, and applicable caps.
Simple redemption is a plus.
Instead of navigating airline miles or loyalty transfers, users can convert Zagg Coins directly into cashback, making the rewards easier to understand and use.
The Bigger Picture
India’s credit card market is shifting.
The conversation is no longer just about travel benefits or premium lounge access. Banks are now building products around everyday digital spending, where UPI, contactless payments, and online shopping account for a significant share of transactions.
The AU-Zaggle card reflects that shift, positioning itself as a rewards card for the digital-first consumer rather than the frequent traveller.
The real test, however, will be whether the reward rates remain compelling after factoring in merchant eligibility, monthly caps, and redemption conditions.