In Business Times today, a Mr Johnny Tan wrote a very comprehensive letter trying to determine the effective interest rate of taking up the instalment plan under Stanchart's new credit card.
Given Mr Tan's analysis, it certainly appear to be expensive indeed. But in all transactions, we should (like Mr Tan) scrutinise any offer for your acceptance. Buyers beware, caveat emptor. No free lunch.. blah blah blah ...
While I applaud Mr Tan's views, I also wish to applaud the brains behind the new Stanchart's credit card.
In this crowded credit card market, Stanchart seeks to be different and pushing the boundary of a credit card to secure market share.
In Seth Godin's words, a purple cow is born.
In the past, a customer/the merchant would need to call the Card Centre for a verbal application to convert a purchase into an instalment plan.
Then someone in Stanchart must be wondering why should we inconvenient the customers.
As the story goes, the rest will be history.
P/S - Similarly, Citibank and SMRT also gave birth to a "purple cow" recently. Do you know what it is?
3 comments:
Hi Edgar,
The "purple cow" for Citibank and SMRT will the "SMRT Citibank Visa Platinium". Beware, it is charging service fee of S$0.25 per top-up effected via the new SMRT Citibank Visa Platinium as indicated in small fonts in their application brochure.
My next question will be whether if it is worth to pay the S$0.25 per top-up in exchange for the rewards points to claim for the free rides??
By,
Public transport commuter
Hi friend,
You are right :)
But I am not sure of the T&C. Not much of a public commuter myself. I wonder why they want to give platinum cards to public commuters. Is there a big market? Or degrading platinum?
Anyway there should be a cost to the service. Is it worth it? Do the sums like Mr Tan.
Again my point is to admire the brains in Citibank. They want market share. They want transactions on the credit cards. They know you will carry the card once you get it (limited wallet space).
Woila!!! Work with SMRT...
Hi Edgar,
If were to choose, I would rather salute Standard Chartered for their innovative idea. This new credit card by Standard Chartered really save us the hassle of having to call the bank to seek for approval.
:)
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