UK Post Office enters credit card market with unique “two in one” offer
The Post Office® today launched a credit card with a unique feature – the flexibility to make larger purchases on a discounted fixed rate.
The Post Office “two in one” credit card is the first in the UK with this feature. It means that customers have the benefit of a competitive credit card along with a market-leading, fixed rate, loan-like facility for major purchases.
David Mills, Chief Executive, Post Office Ltd said: “By launching this unique ‘two in one’ credit card we’re setting a challenge to all other providers. Offering customers a flexible way of paying for larger purchases at a market-leading, discounted rate is something we believe provides real financial benefits and will shake up the market, challenging other lenders who impose higher rates.
“We are a brand that customers know and trust to offer competitive products that can be easily accessed on the high street – something which we are committed to delivering”.
The Post Office® has had great success since launching into the financial services arena with its foreign exchange service ten years ago. It is now the UK’s number one provider, handling 12 million foreign currency transactions last year. It is also the largest independent provider of travel insurance with annual sales totalling more than one million policies. It now offers a wide range of financial services including market leading home and car insurance offers and a range of great value savings products. Building on this success it aims to be a leading player in the UK’s credit card market.
The Post Office® is committed to introducing new products and services which can replace lost revenue streams such as benefits payments, and in turn ensure the long term viability of its 14,600 strong branch network. As well as being a strong player in the financial services market it is now also one of the UK’s fastest growing home telephony providers following the launch of its HomePhone service in January 2005.
Mr Mills continues: “We recognise that the long-term viability of our network depends on our ability to compete successfully in new markets such as financial services which can generate vital new revenue streams for us. The introduction of our ‘two in one’ credit card is a significant milestone as we move towards providing a full suite of financial services products”.
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The Post Office® Credit Card – How it works
The Post Office® Credit Card can be used in the usual way to pay for a wide range of goods and services. But it also offers a flexible way to pay for larger purchases at a discounted rate. This unique mechanism will enable consumers to transfer large purchases between £500 and £2000 into a loan-like facility with a discounted interest rate of 6.8% –
o The purchases can then be repaid over a period of 12 months
o Customers can use the facility for up to two purchases at any one time subject to an aggregate limit of £2,000
o Customers must telephone or visit the website to transfer the purchase to the loan-like facility with the discounted interest rate of 6.8%
o Customers have one month to transfer the purchase to the loan-like facility of the card
About the Post Office®
With 14,600 branches across the country, the Post Office® is the UK’s largest retail and financial services chain in the UK. Its network is larger than all of the UK’s banks and building societies put together. Around 94 per cent of the UK population lives within a mile of a Post Office® branch and 28 million customers visit every week.
In conjunction with its partners, the Post Office® offers over 170 products and services including travel and financial services (including personal loans, car, home and travel insurance), banking services, bill payments, HomePhone (its home telephone service), lottery products, licence applications, phonecards and mobile phone top-ups, and postal services. It is the largest supplier of foreign currency in the UK and is a leading provider of travel insurance.
The Post Office® is also the biggest cash handler in the country – with more than £92 billion passing through its hands each year. 17p in every £1 in circulation goes through a Post Office® branch and around 400 million household bills are paid at Post Office® branches each year.
In the year ending March 2005, the Post Office Ltd total turnover was £1,287 million. Post Office Ltd is a separate limited company within the Royal Mail Group.
To find out where your nearest Post Office® branch is call 08457-223 344.
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Issued by Post Office Ltd:
148 Old Street
London
EC1V 9HQ
