Announcing the new initiative this week, Edcon and Standard Bank said the Edcon-Standard Bank partnership will provide a credit card to Edcon's customers with a proven credit track record and who therefore represent a low credit risk. Edcon currently has over 3.8-million store-card customers.

"We are pleased to be able to extend our service offering to our customers with a strong record of managing their finances, but who currently have not obtained a credit card through normal banking channels," said Ian Wood, Edcon's Financial Services Executive.

"Our research shows that of the existing Edcon account holders, approximately 68 percent do not currently own a bank credit card. Many of these people mistakenly believe they would not qualify."

Wood explained that the new Edcon-Standard Bank card offering is targeting this untapped market without over-extending individuals.

Invitations to take up the credit card will be rolled out over coming months to current Edcon store-card holders whose accounts have been well managed for at least six months. Qualifying Edgars customers will receive their credit card offers from August and Jet customers will receive theirs later in the year.

The new credit cards will be either Edgars or Jet branded to capitalise on the existing strong brand loyalty and awareness that these brands have in the market. In the latest Markinor Top Brands Survey, Jet was ranked as the number-one apparel retail brand and Edgars rated number two.

No credit card fees
"These cards provide a unique value proposition for all Edcon customers but we anticipate that the fee free element will have special appeal to lower and middle income customers," Fergus said.

The Edcon credit cards will have no annual fees, up to 55 days interest-free credit on balances paid in full, no fees on administration support such as access to internet banking or statement copies, and no lost card replacement fees.

"The only fee that will apply will be for customers exceeding their pre-agreed credit limit. We do not believe good account holders should subsidise bad customers," explained Fergus.

The new credit cards will operate independently of existing Edgars and Jet store-cards and Clubs. They will enable consumers to pay for goods and services at stores and vendors outside the Edcon network.

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