January 31, 2001, 11:24 AM

Credit card companies fight the battle for shoppers' online wallet share

(Page 3 of 3)

Unlike other single use card numbers offered by AmEx and MBNA, which can be used only once, Discover has added the flexibility to allow its single use card number to be accepted by the same merchant for recurring payments or to pay for items on back order. Orbiscom Inc. supplies the technology.

“This can help merchants attract new customers to online shopping who previously were not comfortable giving their account number online,” says Colleen Zambole, vice president of e-commerce for Discover.

The ability of card issuers to deliver consumers who have never shopped online is critical for Internet retailers, especially those just establishing their brand. “We may not have as large a cardholder base as the leading issuers, but our cardholders are more active online shoppers,” says NextCard’s Subramanian. “We have been able get better deals for our cardholders from some merchants because of this. Plastic is the currency of the web, so people will pay attention to the offers that come to them through their card issuers’ site.”

And that can mean a lot of new business for Internet retailers.

Peter Lucas is a Chicago-based free lance writer

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From The IR Blog

FPO

Paul Dobbins / E-Commerce

6 tips for maintaining sales during the post-holiday lull

Use that stellar email list you built during the holidays to market new products or ...

FPO

Jeff Sass / E-Commerce

How brands use domains beyond dot-com to attract shoppers

Amazon, for example, posts holiday ads to amazon.blackfriday.

Advertisement