Hebrew-language daily “Yediot Ahronot” reports that Bank Leumi’s credit card company Leumi Card is in advanced negotiations to join Buy and Bonus Savings Club instead of Visa Israel Credit Cards, owned by Discount Bank.
Leumi Card said in response that “negotiations are under way between the two parties”. Blue Square Israel (NYSE: BSI), which owns Buy and Bonus Savings Club, said that “nothing has been closed yet, and we are negotiating with both Leumi Card and Visa Israel Credit Cards”.
It is believed that if Blue Square and Leumi Card sign an agreement, cooperation will start only in early 2002. It is also believed that Buy and Bonus is planning to turn the savings club into a credit card club, and issue Buy and Bonus credit cards in cooperation with a credit card company.
Buy and Bonus Savings Club was set up in April 1997 by Blue Square (50%) and Hamashbir Lazarchan (50%). Buy and Bonus Savings Club is considered Israel’s biggest customers club, with over a million members. It is believed that only 75-80% of the members, or some 800,000 customers, are active members that use their cards.
Published by Israel's Business Arena on 9 August, 2001