Bank Permata, Indonesia’s eighth-largest lender by assets, and Hero Supermarket, one of the country’s largest retailers, have introduced a co-branded credit card, which provides shopping benefits to holders of the card.
“Grocery customers have shopping routines. This potential market segment is what we are eyeing,” said Lauren Sulistiawati, retail banking director at Permata.
She added that the Jakarta-based lender was confident the cooperation would help boost credit card loans to consumers, because the Hero Group has 573 outlets across the country including Giant hypermarket stores and Guardian pharmaceutical outlets.
Lauren said that as of the end of September the lender had issued 500,000 credit cards and expected the number to grow to 700,000 by the end of the year.
Bank Permata is owned by Indonesian conglomerate Astra International and London-based lender Standard Chartered Bank, who each hold a 44.51 percent stake.
Holders of a “PermataHERO” credit card, which has no annual fee, will enjoy a 5 percent discount for branded products from Hero, Giant and Guardian. Customers will also receive a 3.5 percent “cash back” when they shop at these three stores.
The credit cards come in the Platinum, Gold and Classic categories.
Wirry Tjandra, marketing director at Hero Group, said she expected the collaboration to boost sales and provide “added value” to the company’s customers.