In a world where the swipe of a plastic card gets you a new TV, a new car, or a new set of speakers for watching movies, credit cards are becoming the preferred method of payment — not cash. From BMO, to PC Financial, to RBC, to American Eagle Outfitters, each company provides their own benefits; each company has a differing value proposition.
Which credit card provider to choose from? Choose based on their value propositions!
The largest 4 corporations in the credit card market
In an article discussing the benefits of credit card usage and another article discussing the perks of each separate card, I felt compelled to dig deeper to the core of credit card providers and their value propositions. In an age where shopping is as easy as pulling out your credit card, the BMO SPC Mastercard provides students with a 10% discount at participating stores. They also emphasize their policy of no annual fees and competitive interest rates. This is in comparison to the MBNA SmartCash Mastercard which provides cash back per transaction. Each credit card company is determined to provide their customers with benefits and carry out their value propositions through proper positioning and defining exactly what/how each product benefits you and exactly how they will uniquely carry that out. I believe in a saturated market with cards ranging from providing “travel miles” to cash back to lower fees, companies need to position themselves well in order to differentiate themselves from their competition. Corporations need to be the first to launch that particular product/benefit in order to secure within consumer’s minds that they are the “best” at that one thing.