Kogan enters the credit card market

Kogan has launched Kogan Money Credit Cards offering consumers a buy now pay later option (BNPL), no annual fees and interest free days on retail purchases, however incentives may prove not enough to grab the market. 

In partnership with Citi,  Kogan's Visa credit card is banking on providing Australians access to a range of loyalty incentives and special offers on everyday purchases at Kogan.com to capture the market space.

This may prove a challenge as latest research from RFi Group shows that among all credit cardholders, only 23 per cent consider loyalty program status very important when choosing a new credit card.

Forty-two per cent preferred their most used card rewards program over an offer-based rewards program which offers frequent exclusive cardholder discounts at top retailers, similar to Kogan’s offering. 

The results also showed consumers preferred their most used credit card rewards program over a cashback-based rewards program with the ability to redeem accumulated cashback when you make purchases.

However, 45 per cent stated benefits are a bonus with Kogan’s BNPL offering a strong draw card for consumers as cardholders will be able to ‘buy now pat later’ at the Kogan.com checkout, using their existing credit limit. 

Cardholders simply register their card and then opt in for an instalment plan at checkout. 

Director of strategy at Kogan.com, Ross Metherell said the Kogan Money Black Card is designed to empower customers to stay on top of their spending without the worry of paying an annual fee.

“Kogan.com delivers what Australians need at some of the most affordable prices and rates available in the market, and Kogan Money is extending this concept to a range of in demand financial products and services.” 

“The Kogan Money Black Card and the new rewards program launched in conjunction with it, provide Aussies with a new Visa credit card with access to rewards that provide unmatched value.”

Metherell added digital efficiency is an important factor in the release as the card comes with a mobile app, available on iOS and Android, allows cardholders to monitor purchases, receive transaction updates through real time push notifications and chat 24/7 with the Kogan Money Credit Cards team.

According to Choong Yu Lum, head of cards and loans at Citi, “It’s fantastic to partner with an innovative company like Kogan.com to offer a card that is great value for consumers, offering a rich uncapped rewards program with no annual fee.”

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