CheQ and AU Small Finance Bank have officially launched the CheQ AU Credit Card, marking the debut of India’s first co-branded credit card powered by Light-Emitting Diode (LED) technology. This innovative card illuminates upon physical contact with a payment terminal, providing real-time visual confirmation for contactless transactions. By combining advanced tap-to-pay features with a unified rewards ecosystem, the partnership aims to redefine the digital payment experience for Indian consumers.
Features of the LED-Powered Credit Card
The CheQ AU Credit Card introduces a unique aesthetic and functional feature to the Indian credit card market. The card is embedded with specialized LED inlays that glow when the card is brought within the range of a Near Field Communication (NFC)-enabled Point of Sale (POS) terminal. This visual cue acts as a confirmation for the user that the tap-to-pay transaction is being processed, enhancing the engagement and security perception of contactless payments.
One of the most significant technical aspects of the card is its battery-free operation. The LEDs do not require an internal power source. Instead, they utilize power harvesting technology, which draws energy directly from the radio frequency (RF) field generated by the POS terminal. This ensures the card remains as thin and lightweight as a standard credit card while offering a futuristic user experience. The card is available in both premium metal and durable plastic variants to cater to different customer segments.
Applications for the card are scheduled to open through the CheQ app on April 28, 2026. While the standard annual fee for the card is ₹499, the co-branded platform has announced a one-time fee of ₹999 specifically for the LED-enabled variant. However, this introductory fee is being waived for CheQ members who apply before May 31, 2026.
Unified Rewards Ecosystem and Dual Network Support
Beyond its visual appeal, the card is designed to maximize value through a unified rewards program. Cardholders earn CheQ Points, a proprietary currency that can be redeemed across the CheQ app’s ecosystem. The rewards structure is tiered to incentivize spending on high-frequency categories:
- 12% Rewards: On “Power Brands” such as Amazon, Flipkart, Zomato, and BigBasket, as well as on utility bill payments made via the CheQ app.
- 5% Rewards: On everyday online categories including travel and grocery across more than 10,000 brands.
- 2.5% Rewards: Specifically for Unified Payments Interface (UPI) transactions when using the RuPay variant of the card on the CheQ app.
- 1% Rewards: On all other eligible retail spends.
The card leverages dual payment networks to provide versatility. It is issued on the Visa network for global acceptance and high-value domestic transactions, and on the RuPay network to enable seamless UPI-linked credit payments. This dual-rail strategy ensures that users can benefit from the wide acceptance of Visa while enjoying the convenience of UPI, which has become the backbone of India’s retail payment infrastructure. Additionally, new cardholders receive a complimentary EazyDiner membership worth ₹695 as a welcome benefit.
Implications for the Fintech Landscape in India
The launch of India’s first LED-powered card is more than a technological novelty; it represents a strategic shift in the co-branded credit card ecosystem. By integrating visual feedback into the hardware, CheQ and AU SFB are addressing the growing consumer preference for interactive and premium financial products. This trend is particularly evident among the tech-savvy Gen Z and Millennial demographics, who value tactile and personalized experiences in their digital interactions.
The partnership also underscores the evolving role of fintech platforms as primary distributors of credit. In accordance with the Reserve Bank of India (RBI) guidelines on co-branded cards, banks like AU SFB leverage the digital reach and user engagement of platforms like CheQ to expand their credit footprint. This collaboration allows for more granular data analysis and the creation of hyper-personalized reward programs that traditional banking models may struggle to deliver independently. The integration of RuPay also aligns with the national objective of strengthening domestic payment systems and expanding the scope of credit-on-UPI.
About CheQ and AU Small Finance Bank
CheQ is a Bengaluru-based credit management platform founded in 2022 by Aditya Soni. It was established with the vision of simplifying how Indians manage and pay their credit card bills while offering a unified rewards layer. The platform aims to improve credit health by providing users with clear insights into their spending and repayment patterns across multiple credit lines.
AU Small Finance Bank (AU SFB), headquartered in Jaipur, was founded in 1996 as AU Financiers (India) Ltd, a vehicle finance company. It commenced operations as a small finance bank in April 2017 after receiving a license from the RBI. Led by Sanjay Agarwal as the Managing Director and CEO, AU SFB has grown into one of India’s largest small finance banks, focusing on providing credit and banking services to low- and middle-income individuals and micro-businesses. The bank is recognized for its retail-focused business model and its aggressive expansion into digital banking services.
Key Takeaways
- The CheQ AU Credit Card is India’s first co-branded LED-powered credit card, featuring an embedded light that illuminates during tap-to-pay transactions.
- The LED mechanism is powered by power harvesting technology from the NFC field of Point of Sale (POS) terminals, requiring no internal battery.
- The card operates on a dual-network rail, utilizing Visa for global transactions and RuPay for UPI-linked credit payments.
- CheQ was founded in 2022 by Aditya Soni and is headquartered in Bengaluru, while AU Small Finance Bank is headquartered in Jaipur.
- Applications for the credit card are scheduled to open on the CheQ app starting April 28, 2026.
- The card offers a unified reward system called CheQ Points, with up to 12% rewards on specific power brands and bill payments.
