Interesting story on a new kind of credit card that preys a little less on customer's than others. Eliminating late fees and penalty rate for late payments are more tweaks than a complete re-thinking of how credit card companies make money and what they are in business for. While the author suggests that the move is about building customer trust, I would tend to be skeptical about that.
To me it seems to be more about differentiation. Rewards, miles and cash-back offers is what everybody else is competing on. It is harder to get noticed by doing more of the same - to entice a switch it would take a deal so spectacular that it is no longer a profitable business decision. The idea here to eliminate some pesky fees and usurious interest rates is a very smart one for sure. It gets the customer's attention and there is the first mover advantage. The marketing company behind it calls it for what is really is.
crossings as in traversals, contradictions, counterpoints of the heart though often not..
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1 comment:
Chuckled at the "patented late fee waiver" phrase in the case study summary link!
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