Abstract
Overview
Introduction
Part of the UK Plastic Cards 2008 series, this brief provides insight into
some of the most innovative value propositions from card issuers around the
world and examines how such products could be adapted by issuers in the UK.
The brief examines products that encourage good account management, as well as
customer segmentation and products that link payment cards to mortgages.
Scope
- The brief looks at products in the US, Europe and the Middle East.
- Includes a detailed discussion on payment card account management, a
particularly topical subject.
- Contains several examples of how issuers have used their cards to cross
sell other financial products.
- Examines customisable credit cards from overseas markets, discussing how
suitable such products would be in the UK.
Report Highlights
Issuers in the US and Asia pacific regions have created products that reward
good account management. This has been achieved by designing reward programs
around timely repayments in addition to transactional loyalty.
In North America, several issuers have card loyalty schemes that help
cardholders to pay off their mortgages by using cashback from transactions to
make overpayments. While the long term benefits can be very valuable to the
cardholder, there are several potential obstacles to overcome in order for an
issuer to set up such a program.
Card individualization has been taken to new levels by issuers in the US.
Cardholders can customize the trade-off between rewards earned, interest rates
charged and interest free periods to create their ideal card. However, there
are pitfalls for such models, which could explain the withdrawal of the
Accucard product from the UK market in 2006.
Reasons to Purchase
- Find out what issuers are doing in other markets to attract and retain
cardholders.
- Understand innovative product designs across the areas of account
management, loyalty, and customer segmentation.
- Discover how innovations in other markets could be applied in the UK.
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