Punjab National Bank (PNB) has announced a major partnership with a company called GYFTR to improve its credit card business. The two parties have signed a three-year deal to create a special rewards channel. This will help PNB credit card holders get better deals and discounts on their daily spending. It is a strategic move to make PNB cards more attractive in a competitive market.

Under this agreement, GYFTR will build and run a white-label platform (a platform built by one company but branded by another). This website or app will look like an official PNB service. It will allow customers to access curated deals from many popular brands. The categories covered include shopping, food delivery, travel, and entertainment. This is a big step for a public sector bank to enhance its digital presence.

Several big brands are already listed for this new platform. These include Amazon Prime, Swiggy One, SonyLIV, and Starbucks. Other brands like Domino’s, Myntra, Bata, and PVR are also part of the plan. PNB will work with GYFTR to update this list regularly. This ensures that the offers stay fresh and useful for the customers depending on current trends.

GYFTR will handle all the technical work behind the scenes. They will provide the technology, payment systems, and tie-ups with merchants. This means PNB staff do not have to worry about the daily technical operations of the rewards site. The platform will manage the entire journey from when a customer logs in to when they redeem their points or vouchers at a store.

For PNB, this arrangement adds a strong digital layer to their existing credit card operations. While PNB has a massive branch network across India, digital engagement is now a priority. By offering vouchers for brands like Myntra or Swiggy, the bank can attract younger customers. It also helps in retaining current cardholders who might otherwise switch to private banks for better reward points.

Arvind Prabhakar, the CEO of GYFTR, stated that the partnership aims to create value beyond just simple transactions. He believes PNB’s huge reach and GYFTR’s network of brands will lead to great results. GYFTR was formerly known as LKP Finance Ltd. They already work with many other banks and fintech companies to provide similar gifting and engagement services.

Bankers should watch how this impacts PNB's credit card usage numbers. If successful, more customers will use their PNB cards to earn and spend points on the new platform. This increases the bank's 'fee-based income' (money earned from services rather than interest). It also improves 'stickiness,' which means customers are less likely to close their accounts if they enjoy the rewards.

In the coming months, PNB staff at branches may see more queries regarding these new digital offers. The bank will likely monitor how many users sign up for these brand vouchers. This deal shows that public sector banks are now fighting hard to match the digital features offered by private players in the Indian credit card market.