Flamboyant British entrepreneur Richard Branson’s Virgin Money has taken the South African credit-card market by storm — with more than 50 000 cards approved in the first six weeks of its entry into the country. In addition, the company has approved more than 20 000 car cards.
John Maxwell, MD of Virgin Money South Africa, said the extraordinary response to the launch is proof, if any was needed, that South Africans are looking for a better deal from their financial institutions.
“South African credit-card holders are fed up with being ripped off to the tune of R1,5-billion a year by their credit-card providers, and have been very quick to pick up on the great value offered by the Virgin Money credit card,” he said. “Simply put, we’re offering a financial product that is superior to anything else in the South African market.”
The Virgin Money credit card is the first in South Africa to combine no annual fees, no loyalty fees and an interest rate of 0% for the first three months for any purchases, with a competitive variable interest rate thereafter of 15,75%.
The card is also the first to offer a flat 5% interest rate on any positive balance — no matter how big or small.
“Virgin Money has brought real competition to a fat-cat South African credit-card market, and stimulated a permanent shift towards lower pricing,” said Maxwell. “We estimate that our customers have already saved in excess of R13-million by not being fleeced with annual credit-card, petrol-card or loyalty fees.” — I-Net Bridge