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Co-branded Card Economics Simulator — Bank vs Brand P&L

Plug in any co-brand partnership scenario. See exactly where the money goes, who breaks even, and why so many of these decks look great until year two.

Most co-branded credit card press releases land the same way: glossy logos, big launch event, promises of "deep alignment." Eighteen months later the program is on a quiet diet — reduced rewards, scaled-back marketing, the two teams blaming each other.

The reason is almost always the unit economics. A co-brand card has a real P&L for both the bank and the brand. If activation rates miss, if revolver rates are lower than modeled, if the reward-funding split is wrong, the partnership stops working — well before either side admits it publicly.

Use the simulator below to stress-test any scenario you care about. Slide the inputs, watch each side's P&L move in real time, hit a preset to load realistic numbers for an e-commerce, premium-travel or quick-commerce card. The math is laid out fully — adjust your priors, run a different scenario, share with your team. Pairs naturally with the long-form essay Why most co-branded cards fail in year two.

Quick presets

Portfolio

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Disclaimer: model uses simplified industry-standard inputs. Real co-brand programs have additional line items (insurance commissions, FX margins, marketing co-fund) not modeled here. For educational use, not investment advice.

FAQ

How do banks make money on co-branded cards?Three main streams: (1) the bank's share of interchange on every transaction (after the brand's cut), (2) interest on revolving balances — which is where the real money is for banks, and (3) fees (annual, late, foreign exchange) net of waivers. Bank-funded rewards, acquisition costs and servicing eat into the gross.What revenue share do brands get on co-branded cards?Typically 15-30% of interchange in India, depending on the brand's leverage. Premium brands with engaged audiences get higher shares; mass-market brands get less. Brands also often agree to fund a portion of rewards on their own platform — that can flip a "good" share into a money-losing program.Why do co-branded card partnerships fail in year two?Activation undershoots projections, revolver rates are lower than modeled (especially for premium audiences), acquisition costs creep up, and brand-funded rewards on own-platform keep flowing while interchange-share revenue doesn't catch up. Once unit economics flip negative for either side, both teams start scaling back — often quietly.What's a good activation rate for a co-branded card?50-65% is decent for mass-market e-commerce cards. Premium travel cards target 70%+. Anything under 40% means either the acquisition was filler-quality or the value proposition isn't differentiated enough.Is the simulator's output what banks actually see internally?It captures the main P&L levers in the right relationships. Real bank models include risk-adjusted yields, cohort attrition curves, and capital allocation that this version simplifies. But the directional impact of each input change is faithful.

Built by Shreyas Khare — payments & partnerships operator.