NEWS: MBNA talks to shops over credit card push

Competition in the credit card market is set to intensify later this year as MBNA International, one of the biggest credit card operators in the US, talks to advertising agencies about a pounds 6 to pounds 9 million drive to highlight its low interest rates.

Competition in the credit card market is set to intensify later this

year as MBNA International, one of the biggest credit card operators in

the US, talks to advertising agencies about a pounds 6 to pounds 9

million drive to highlight its low interest rates.



MBNA is one of a new breed of American card operators offering cheap

interest rates and special deals. It presents a direct threat to

established brands such as Barclaycard and Mastercard.



The Chester-based subsidiary of the Maryland Bank of America has been

operating in the UK for three years, and currently uses Leagas Delaney

for work on its Gold Card, although, according to Register-MEAL, this

has amounted to little more than pounds 200,000 to date.



Now, however, MBNA, under the auspices of its business development

director, Katie McEntee, is talking to media and creative agencies about

a major push to attract more customers.



McEntee was unavailable to comment as Campaign went to press.



The pounds 40 billion UK credit card industry has proved to be a major

draw for US card operators because this country’s relatively high

interest rates on cards offers lucrative margins.



The cut-price operator, Advanta, came into the market earlier this year

and was followed by the People’s Bank, based in Connecticut. Earlier

entrants to the market include MBNA and another US organisation, the

Beneficial Bank.



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