First fee free credit card exceeds all expectations
12 April 2006
The Standard Bank-issued Edcon MasterCard no fee credit card has become the fastest growing MasterCard in the AEMI region (Africa, Middle East and Europe) with take up of almost 340 000 cards in the five months to February.
The take up of the Edgars and Jet branded cards, which we are proud to say were the first in South Africa to carry no annual fee, has exceeded all our expectations,said Ian Wood, Edcon Group Financial Services Executive.
Wood explained that not all offers to qualifying customers have yet been issued so there is good potential for further growth.
The cards have been offered to pre-approved Edgars and Jet store-card holders who had managed their accounts well for at least six months.
Since the card was launched in October 2005, approximately 340 000 cards have been issued to just over 326 000 customers with an additional 59 000 garage cards issued. We are on track to meet our target of being cash positive within 12 months,Wood said.
It is gratifying to realise that people who previously did not think they were eligible for a credit card, or who were nervous about credit, are prepared to extend their financial relationship with Edcon. We see it as a reflection of their trust in our brand.
Given that customers who have taken up this offer continue to conduct their private label account in a satisfactory manner, it appears that the trust we have placed in their relationship with Edcon has been justified,Wood said.
Barry Fergus, Senior Director of Credit Cards at Standard Bank said the unique risk and reward techniques applied to the Edcon offering have proved themselves.
Together with Edcon we have been able to create an opportunity for individuals to access a broad credit facility, opening the doors to more convenience and spending power at all outlets accepting MasterCard,Fergus said.