W38 - Co-branded Card Experience

Some impressions and reflections after trying the co-branded card.This week I got a Meituan co-branded card, and the whole process felt refreshingly smooth. One-click application, instant credit approval, trial privileges, in-person card activation and signature verification — the online and offline steps flowed seamlessly. The post-activation perks were genuinely satisfying, and the data interconnection with the Meituan app greatly simplified frequent tasks like checking statements and making payments. Overall, it’s a credit card product that far exceeded my expectations.

But even with such an excellent experience,the conversion rate from approved application to card activation is only about 30%. This is what I heard verbally from staff at Shanghai Bank when I activated the card. According to their feedback, most people click by mistake and already have a preferred card they use regularly, so they’re reluctant to activate another card in person. That conversion rate was a shock to me — testing your idea or product early and directly in the real market is essential; the market always has surprises. It reminded me of the advice in The Lean Startup about finding product-market fit: when you have an idea, you shouldn’t bet on hitting a home run; you should aim to verify as quickly as possible that it isn’t one of the bad ideas.

I can think of three strategies for now.

First, go deeper into lower-tier markets.Users in S-tier and even A-tier cities are mostly already cardholders; penetration into B-tier and below cities may be more effective.

Second, improve convenience.From observing people around me, most aren’t willing to apply for multiple credit cards and prefer to settle their spending with a single preferred card. The main reason is they don’t want to invest extra effort in billing cycles and credit management — multiple cards feel like a bigger burden. So improving convenience in card usage could be a breakthrough for us.

Third, strengthen the co-branded card’s positioning as a lifestyle service.Take American Express as an example: among credit card brands it has a distinct identity, and its image of serving global travelers is deeply ingrained. Data shows American Express accounts for 45% of foreign credit card spending in China.

Emphasizing payment features in lifestyle services allows bolder experimentation with convenience and discounts. Create natural associations for users within lifestyle scenarios. For example, many people check Meituan for in-store deals when paying; cultivating the habit of checking for extra discounts from the Meituan co-branded card at payment is possible. For higher-ticket, higher-decision-cost services like cosmetic procedures, offering favorable installment plans could be effective.