Self-issuing credit cards- KeyCorp (NYSE:KEY)’s key to consumer lending, U.S. Bancorp (NYSE:USB)
KeyCorp (NYSE:KEY) has been making a lot of strategic operational changes. Last year, KEY has decided to start self-issuing credit cards. The Columbus, Georgia-based TSYS said that it has signed a long-term payments deal via which it will be providing KeyCorp (NYSE:KEY)’s consumer credit card portfolio with payment processing services. No other details were divulged by the company. Credit cards are a very high interest form of consumer-lending. Typically, credit cards generate 13 percent or more in interest-returns on floated spending.
Aggressive expansion efforts
KEY had bought a $725M KEY-branded credit-card portfolio from Elan Financial Services. Now, TSYS has said that the bank company will use its TSYS TS2 platform to convert that portfolio. New cards will be issued as the company moved forward with its effort. Apart from this, TSYS said that KeyCorp also now has an agreement with for the provisioning of risk management and fraud prevention services to its bank clients. KeyCorp has also issued a release about this particular agreement. The company has been working aggressively towards spreading its operations in the consumer credit card market. It needed a partner who would be able to provide the company with solid card-industry insight, speed-to-market and flexibility and TSYS seemed like the ideal choice.
The credit card way- the right way
U.S. Bancorp (NYSE:USB) and a power sports industry leader, Polaris, have created the PolarisVisacard. With this card, customers will get points for every dollar that is spent for everyday purchases and at Polaris dealerships. These points can be redeemed for Polaris Cash. Once a cardholder earns a total of 2,500 points, they can be redeemed for $25 in Polaris Cash, and will be usable only at participating Polaris dealerships. This particular card has been created especially for Polaris enthusiasts. The partnership with USB will let Polaris customers earn handsome rewards on all purchases. They can then return to their local dealerships and use their rewards to buy top-of-the-line accessories and parts, Polaris apparel. Alternatively, it can also be bunched up and put towards buying a new vehicle.
Be it a big bank or a small one, they will try various methods, either via alliances or new launches, to stay in the public eye as that’s what beating the competition is all about.