The insurance group Hibernian yesterday announced a foray into the credit card business, offering consumers a MasterCard with a lower interest rate than most competitors and a reward programme with 14 retailers.
The company said it believed the card would see customers alter their spending patterns to benefit from its points system.
Hibernian said it would promote the card intensively over the next six months, concentrating on direct marketing.
It would have an annual interest rate (APR) of 19.9 per cent, compared to the higher charges levied on standard credit cards with Ulster Bank (24.6 per cent), Allied Irish (24.7 per cent) and Bank of Ireland (25.5 per cent), Hibernian said.
To lure current holders of rival credit cards, the company says it is offering an APR of 13.9 per cent for the first six months on any balance transferred.
Customers will also receive credits, called Swift Points, for purchases made in a range of named retailers. The points can be redeemed against further purchases.
The retailers include Superquinn, Clerys, Texaco, Hughes & Hughes, JWT Holidays, Cityjet/Air France, Stena and Hibernian group itself. Most grant around five points - giving credit of £5 in any participating business - for every £100 spent. Texaco, giving just 1 point for every £200 spent, appears to be card's most parsimonious partner.
The company stressed that the card also functions as a standard MasterCard, accepted in millions of outlets and automatic cash dispenser machines worldwide.
Hibernian's chief executive, Mr Adrian Daly, said that if customers managed the card properly, and paid off the balance in full every month, the card would, in effect, be free.
He said there was a strategic rationale behind Hibernian moving into the credit card market.
"Innovation and quality are two keys to success in our market - this credit card loyalty programme is truly innovative, being the first of its kind in this market," Mr Daly added.
The three executive directors of Hibernian Group - chief executive Mr Adrian Daly, finance director Mr Cecil Hayes and Mr Eddie Shaw - shared salaries and other benefits totalling £524,000 last year, compared to £504,000 the previous year.
The three directors received combined salaries of £375,000, benefits in kind of £36,000, annual bonus of £57,000 and pension contributions of £56,000.
