- Kogan.com plans a Kogan Money Credit Card.
- It has closed a deal with Citi for infrastructure, servicing and back office processing.
- The card will launch early 2019.
Pure-play portfolio retailer Kogan.com just closed a deal with Citi to create a Kogan Money Credit Card.
Details about the card, including interest rates, will be released when it is launched. Kogan.com couldn’t say when the card would be available only that it would be sometime in 2019 (EDS: updated from “early” in 2019).
Kogan.com says the card will be competitively priced, and offer unique and compelling loyalty incentives to shop on Kogan.com and elsewhere.
Citi will issue the card, provide system infrastructure, servicing, back office processing, regulatory and compliance oversight, and branded digital platforms.
Kogan.com will market and distribute the card and provide loyalty fulfilment.
At 12.30 pm (AEDT), Kogan.com shares were up 7.4% to $3.03.
David Shafer, Executive Director of Kogan.com, says the partnership will be a clear win for customers.
“Kogan.com is proud to be partnering with Citi, the world’s largest credit card issuer, to deliver Aussie consumers a Kogan Money Credit Card which will provide outstanding value,” he says.
“We chose to partner with Citi because of their forward thinking and ability to leverage digital efficiency to deliver compelling value to Kogan customers. This partnership will be a clear-win for our customers and Citi customers.”
Alan Machet, Head of Citi Australia’s Consumer Bank, says the Kogan Money Credit Card will be unique in the market, providing strong value to Australian consumers.
“Citi is excited to partner with Kogan.com to launch the Kogan Money Credit Card,” he says.
“With well over a million active customers, and having been voted by the public for the second consecutive year as ‘Australia’s favourite online retailer’ at the Online Retail Industry Awards, Kogan.com clearly offers Australian consumers excellent value.”
Earlier this month Kogan.com announced a deal with Mercer to launch an “ultra-low” fee Australian superannuation fund.
The agreement follows closely on Kogan.com adding home loans to its portfolio which includes Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Health and Kogan Travel.
Last month Kogan.com released a trading update showing revenue from Global Brands had fallen by 27%. Kogan said foreign competitors had been avoiding GST since the introduction of new GST laws in July.
Its shares fell 30%. The company listed on the ASX in 2016 at $1.80 a share.
Founder Ruslan Kogan is a substantial shareholder.