Sluggish Credit Card Growth Fuels Rise In Debit Card Applications
Posted January 21st, 2010
We’ve already talked about the rise of the debit cards during 2009. This was mainly due to the credit crunch and people’s rising awareness about their financial situation. This situation has created a big challenge for credit card issuers nationwide as more consumers choose debit over credit in order to control their finances better.
Stephen Karpin, General Manager of credit cards for Commonwealth went as far as saying: “Boom is not a word you would associate with the credit card industry in the comming five years.”
“It will continue at single-digit growth above gross domestic product, but some players will have double-digit growth at the expense of others if they have a different value proposition.”
“For every 1% in rise of unemployment there is a 0.5% loss on our credit card book,” said Mr. Karpin.
Increased credit card regulation is also seen as a contributing factor to the current situation by many. With a sluggish market many providers are looking to attract more consumers by thinking outside the box.
GE Money has already managed to shimmy ahead of the pack thanks to their Coles Source MasterCard launched last year. Their idea to offer consumers store branded credit cards seems to be well received by the Australian market.
Interest-free card products are at the top of the shopping list right now for new credit card consumers because it gives them more financial control and security.
Citibank has also reported strong figures from its Frequent Flyer Emirates Platinum Card and its BP Cashback MasterCard.
People are looking for more value these days.
Source: Financial Review
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Comparison of our Top Credit Card Offers
| Interest Rate (p.a.) | Balance Transfer Rate (p.a.) | Annual Fee | Cash Advance Rate (p.a.) | |||
|---|---|---|---|---|---|---|
Bankwest Breeze MasterCard | A low interest rate on everyday purchases with a low balance transfer offer | 0% for 6 months (reverts to 10.99% ) | 4.99% for 9 months | $49 | 21.99% |   |
Citibank Clear Platinum Card | A low interest rate offer on balance transfers and purchases | 11.99% | 0% for 12 months with 3% handling fee | $99 | 21.74% | |
St.George Vertigo | An introductory offer on balance transfer and a low annual fee | 13.24% | 0.99% for 6 months | $55 | 21.49% | |
Virgin Flyer Credit Card | Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers | 20.99% | 1.9% for 12 months | $50 (for first year thereafter $99) | 20.99% | |
Westpac 55 Day Credit Card | No annul fee for the first year with a low rate on balance transfers and purchases | 0% for 5 months (reverts to 19.59% ) | 3.99% for 6 months | $0 annual fee for the first year ($30 thereafter) | 21.49% | |
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