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Google Offers Credit Card to AdWords Customers

Mercator Advisory Group by Mercator Advisory Group
July 22, 2011
in Analysts Coverage
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The credit card Google is offering will be a MasterCard issued by World Financial Capital Bank, with no annual fee, an 8.99 percent APR, an ample credit line, and exclusively for purchasing advertising from Google. The advertising giant believes the new product will satisfy a customer need, and allow retailers to increase advertising spending before their peak sales seasons when their cash flow is highest.

“Claire Johnson, vice president of global online sales at Google, said the credit card was designed to help small and medium-sized businesses that advertise on Google but who often don’t have the funds to support a heavy ad campaign ahead of a big sales season, such as Valentine’s day or Halloween.”

“Brent Callinicos, Google’s Treasurer, said that the credit card will be offered to a ‘statistically significant’ number of people as Google examines the results of how availability of the card affects customer spending behavior.”

Advertising sales generates nearly all of Google’s revenue, but its business faces rising competition from a search alliance between Microsoft Corp and Yahoo, Inc.

Read more at: http://www.reuters.com/article/2011/07/20/us-google-creditcard-idUSTRE76J6XU20110720

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