Two months ago, El Al Israel Airlines Ltd. (TASE: ELAL) and Diners issued a new joint credit card. The companies estimated that they would issue 300,000 credit cards within a few years. After two months, the two companies have already reached over 10% of their long-term target.
In a talk with "Globes," Diners Israel business activity manager Barak Nardi, who is also CFO of parent company Israel Credit Cards (ICC), said that 35,000 credit cards had been issued in the past two months, adding, "What is impressive about these results is that the credit card issued has become the customer's leading and most important credit card. The average monthly turnover in this card is NIS 6,800, double the average in the sector."
The card confers the right to accumulate points for airline tickets. There are two types of cards: a bronze card, designed for the general public and issued only by Diners, and a premium card designed for wealthy customers (with a turnover of NIS 10,000 a month) issued by three credit card companies (Isracard's American Express, Leumi Card, and Diners, controlled by ICC).
Diners' figures show that 80% of the cards issued are bronze cards, and 20% are premium cards; the average turnover is NIS 14,000 a month in premium cards and NIS 5,000 a month in bronze cards. The average bronze card turnover is almost 50% higher than the NIS 3,400 average monthly turnover in bank credit cards.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014