Low-fare airline kulula.com on Wednesday announced its first foray into the financial-services sector with the launch of a kulula.com-branded Visa credit card centred on an innovative rewards programme.
The card, issued under licence of FirstRand Bank Limited, and managed by First National Bank (FNB), a division of FirstRand Bank Limited, will offer cash back for every rand spent, which will be used for flights on kulula.com.
Gidon Novick, executive director of kulula.com, said the ease of use and level of rewards of the kulula.com card would turn other loyalty programmes on their heads when the kulula.com card launches in the next few months.
“We see good potential to increase the number of consumers using credit cards in South Africa, particularly when the card is linked to a great rewards programme and a highly competitive and innovative interest-rate proposition. We also expect the uptake of the card to be high among consumers who already use a credit card each month and have an interest in travel.”
Novick said that once kulula.com had conceived the idea, they had considered all the major banks to underwrite it, but that FNB had come out head and shoulders above the rest in terms of their proactiveness, innovation and approach to the concept.
“We are thrilled that our credit card will be managed and operated by FNB,” said Novick, “especially since they have the same approach as we do in terms of ease and giving real benefits to customers. Their solid track record and expertise in the financial-services arena have been crucial for the success of this product. The international acceptance of Visa was also an important factor in our decision.”
The kulula.com credit card, still subject to regulatory approval, will be officially launched to the public within the next few months. — I-Net Bridge