Virgin Credit Card 2010 Relaunch
Virgin credit cards first launched in Australia in 2003 offering good value easy-to-use financial products. Virgin have always wanted to give their customers a better deal and when Virgin Money first partnered with Westpac their credit cards were no exception. As part of global group of Virgin companies headed by the creative innovative and enthusiastic Richard Branson it is little surprise that after just two years away from the Australian credit card market Virgin credit cards are back and ready to offer Aussies a great deal.
The First Virgin Credit Card Launch
In May 2003 Virgin credit card was first launched, and offered a more attractive deal than any other credit card on the Australian market at the time. The Virgin credit card was the first in Australia to offer a unique combination of a low interest rate, no annual fee, 55 interest-free days plus rewards. Most Australian credit cards, then and now, will offer just some of these features, but usually when you want to take advantage of one, you have to compromise on the others you can expect from a credit card. However, the Virgin credit card was the exception.
Richard Branson saw the Australian credit card market as a unique opportunity to offer a great deal on a new credit card. At the time of the launch he commented “I was amazed when I realised what a raw deal Australian consumers are currently getting on their credit cards. Australians are currently having to fork out $1 billion a year on unnecessary interest charges and annual fees, which equates to $100 a year for every credit card account. This money will stay in their pockets if they take out of Virgin credit card which is, quite simply Australia’s best ever”.
It was not only the fees and low interest charges which set the Virgin credit card apart, but also the low introductory purchase and balance transfer rate, the personalised service where you can speak to a Virgin representative not just an automated call centre, and a Virgin calls its mate’s rate’s where you receive instant rewards and value on products and services you can really use. Even if you didn’t have a Virgin credit card back in 2003, you will probably still remember that the cards had rounded corner, Virgin wanted to make sure that their card looks different because it was different.
The Virgin credit card was also backed by MasterCard, who are one of the most accepted credit card merchants in the world, and processed by Westpac, who were and are one of Australia’s big four banks lending security and a local flavour to the Virgin credit card offer.
The Success Of The First Virgin Credit Card
Virgin Money received 50,000 applications in the first week showing that Australians really did want a better credit card deal, it wasn’t just marketing hype around a new product. This sentiment was reinforced by Virgin Money Australia’s managing director Rohan Gamble went on the road with Richard Branson to promote the card. Gamble said he was overwhelmed by the consistently positive response, pointing out that “Australians are fed up with the raw deal they’ve been getting and have been very quick to pick up on the great value offered by the Virgin credit card”.
By 2006 the Virgin credit card had captured 4% of the credit card market and the success in just the first two years saw Virgin launch another great deal. Offering a low introductory balance transfer rate and a low interest rate on purchases, Virgin also kept their low interest rates and no annual fee deal. By this time over 600,000 Virgin cards had been issued with total card balances in excess of $1 billion. This put Virgin ahead of St.George for personal credit card market share, keeping in mind at this time St.George were yet to emerge with Westpac and were a strong independent second-tier Australian bank.
CANNEX calculated that the average Australian could save $127 a year by switching to the Virgin credit card, and avoiding fees and interest charges. The Virgin credit card made up 20% of all new cards issued, and during the same time other card issuers increased their fees by an average of 38%, further securing the Virgin credit card position.
The first Virgin credit card deal comes to an end
The Virgin Money and Westpac credit card deal was always a five-year plan and as May 2008 approached there were no plans made to extend that deal. By 2008, 800,000 cards had been issued and Virgin had captured 6% of the credit card market. Virgin were planning to release new products paid credit cards rewards credit card and to target SME market. There will also plans for home loans, personal loans and superannuation. Unfortunately these new plans Virgin in direct competition with Westpac and so the deal was ended.
Westpac made a very small margin from partnering with Virgin Money, and had initially forged such a partnership to attract smaller credit card customers. However, over the course of the five-year deal with Virgin, Westpac became Australia’s number-one credit card provider and didn’t need to work with Virgin any more. Westpac and Virgin promised no disruption to services and that this time Citibank were already interested in becoming Virgin’s new partner.
The Re-Launch Of The Virgin Credit Card In Australia
In June 2009 Virgin Money Australia and Citibank Australia announced a heads of agreement to offer a Virgin branded financial products to Australians once again. The relaunch is planned for early 2010, and will begin by offering the now trademarked great value, great service and unique deals available only on Virgin credit cards. Virgin and Citibank also planned to release savings accounts and other retail banking products.
Roy Gori the chief executive officer of Citibank Australia has said that the combination of Virgin brand and marketing expertise, coupled with Citibank’s extensive services will be, “a powerful combination that will benefit Australians”. Matt Baxby is the managing director of Virgin Money Australia and knows that Australians have been missing an affordable but feature packed credit card offer, and believes, “we can offer Australian consumers a genuine banking alternative”.
With such a response to the Virgin credit card release the first time around, there is little doubt there will be a rush to secure the latest credit card deal from this intuitive, customer focused and highly experienced credit card provider partnership. Therefore make sure you are not left behind when the Virgin credit card is released in 2010, and you can be one of the first Australians to enjoy this unique credit card deal by applying right here when the card is relaunched.
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- Virgin Money Press Release
- Virgin No Annual Fee Credit Card – Review & Application
- New Virgin Credit Cards Launched
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Posted on Wednesday, July 28th, 2010 at 12:32 pm
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