AU Small Finance Bank and Zaggle enter into strategic partnership to launch Co-branded Retail Credit & Prepaid Cards
AU Small Finance Bank (AU SFB), India’s largest small finance bank and the first in a decade to receive the in-principle approval for transitioning into a Universal Bank, today announced a strategic partnership with Zaggle Prepaid Ocean Services Limited, India’s leading spend management company. The alliance aims to launch co-branded retail credit and prepaid cards program, equipped with a unique Third-Party Application Provider (TPAP) integration and a personalized recommendation engine.
The new retail credit card is designed to give customers more value through smart spending tips, easy-to-earn rewards and seamless, tech-enabled experiences, making everyday spending more rewarding and effortless.
Beyond the retail credit card launch, AU SFB and Zaggle will broaden their partnership to develop a comprehensive commercial credit card portfolio. AU SFB will leverage its underwriting expertise, while Zaggle will utilize its extensive enterprise network to onboard eligible corporate customers. These customers will gain access to Zatix, Zaggle’s centralized SaaS platform that provides real-time visibility, complete control and actionable insights into corporate spending.
The partnership also includes a co-branded prepaid card program for corporate customers, supporting tax-saving benefits through multiple wallets across categories like fuels, meals and gifts. With this program, corporates can manage expenses & reimbursement tracking and access support through the Zaggle mobile app. The idea is to empower both AU SFB and its corporate customers to efficiently manage and scale their commercial card programs.
“We are excited to partner with AU Bank to foray into Retail Credit Card business. The partnership is meant to deliver innovative, technology-led payment solutions that cater to both retail and corporate customers,” said Dr. Raj P Narayanam, Founder & Executive Chairman, Zaggle. “With integrated platforms like Zatix and SAVE, we’re empowering businesses with greater spend visibility, enhanced compliance and improved operational efficiency across all functions.”
Mr. Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank said, “This partnership aligns perfectly with our vision of empowering both businesses and consumers through smarter, more efficient financial solutions. Zaggle’s strong SaaS capabilities and extensive enterprise network complement our credit offerings, and we look forward to scaling this collaboration to new heights.”
In addition, Zaggle will introduce AU SFB with its southern regional corporate/connect as primary banking franchise. With this multi-phase rollout, Zaggle and AU SFB are poised to deliver a powerful suite of financial products and platforms, tailored for India’s dynamic consumer and corporate ecosystem.
Key Highlights:
- Retail Credit Cards with TPAP integration and AI-powered recommendation engine
- Corporate Credit Cards supported by Zaggle’s enterprise acquisition and Zatix SaaS platform
- Multi-Wallet Prepaid Cards for tax savings, fully managed via the Zaggle app
- Zaggle SAVE to automate employee expense reporting and reimbursements
About AU Small Finance Bank
AU Small Finance Bank Limited (AU SFB) is a Scheduled Commercial Bank and has established itself as India’s largest Small Finance Bank since commencing its banking journey in April 2017. Founded in 1996 by Mr. Sanjay Agarwal, a first-generation entrepreneur, AU enters its 30th year of operations with a legacy of deep-rooted “Dharma” of customer centric service—having built, over three decades including more than eight years as a bank, a sustainable and inclusive financial institution that empowers underserved and under-reached communities through a robust retail banking model. AU has received an in-principle approval from the Reserve Bank of India (RBI) to transition to a Universal Bank.
With deep customer insight across India, AU provides comprehensive banking solutions across deposits, loans, credit cards, premium banking, remittance services, merchant solutions, insurance, and investments. As a tech-led bank, AU offers differentiated digital experiences through innovations like 24x7 video banking, WhatsApp Banking, Chatbots, UPI QRs, merchant lending, and its award-winning AU 0101 app.
AU SFB’s wide network of over 2,505 banking touchpoints across 21 States and 4 Union Territories enables service to 1.16 crore customers, powered by a workforce of 53,000+ employees. As on 30th Jun’25, Bank has a Shareholders Funds of ₹17,800 Crore, Deposit base of ₹1,27,696 Crore, Total Loan Portfolio of ₹1,17,624 Crore and a Balance sheet size of ₹1.60 Lac Crore+.
AU SFB is listed on NSE and BSE and is rated ‘AA/Stable’ by CRISIL Ratings, ICRA Ltd., CARE Ratings, and India Ratings. Its Fixed Deposits carry an ‘AA+/Stable’ rating from CRISIL Ratings, reflecting its financial strength and investor trust.
