Singapore - Citibank's credit card trends indicate that more customers are turning to cash back credit cards as their preferred choice. To meet the increasing demand of cash back value by customers in Singapore, Citibank and MasterCard Worldwide today announced the launch of the Citi DIVIDEND WORLD MasterCard. Targeted at the mass affluent segment, Citibank's newest credit card is Singapore's first that combines the value of cash back with the best premier lifestyle privileges.
As of August this year, Citibank Singapore Limited has seen a year-on-year increase of 30% in the total number of Citi DIVIDEND Cards - Singapore's first cash back credit card. August also saw the number of transactions on the card increase by almost 30%. Year to date, January 20 09 to August 2009, the number of transactions has increased by more than 10%, compared to the same period the year before.
These figures indicate the increasing importance that customers are placing on cash back returns over other rewards. In addition, cash back payouts in July 2009 for the Citi DIVIDEND Card saw an increase of more than 20% in the number of checks sent to customers, compared to 18 months before.
Mr. John Denhof, Business Director of Credit Payment Products, Citibank Singapore Limited ,said, "At Citibank, we are seeing a clear signal from our customers that cash back is rapidly gaining popularity amongst the mass affluent segment. While we are seeing very strong growth trends in overall credit card spend over the last quarter, consumers remain sharply aware of where to derive the best value for their spend. Our customers are always looking out for tangible savings in the form of cash back over other types of rewards. Hence, this product combines the best rate of earning cash back with giving customers the widest possible choice of using their rewards.
"With the Citi DIVIDEND WORLD MasterCard, we are leveraging on the success of the Citi DIVIDEND Card - Singapore's first cash back card - and enhancing its unique value of cash back across all categories of spend with the exclusive lifestyle and premier travel benefits of WORLD MasterCard," he added.
Citibank's figures on its card members' behavior are supported by the latest results of the MasterCard Worldwide Survey on Consumer Purchasing Priorities. It shows that customers in Singapore are looking to save even as they plan to maintain their discretionary spend for the rest of the year. The survey, released twice yearly, provides insights into consumers' discretionary spending priorities for the six months ahead. The latest survey was conducted from March to April this year with more than 400 consumers in Singapore participating.
According to the survey, 88% of Singapore respondents said they were going to save more, or as much as they had been saving over the past six months. Over three quarters of those surveyed said that they were influenced by the current uncertain economic climate and the need to be prepared for emergency expenditures. At the same time, the survey showed that 55% of Singaporeans polled plan to maintain their discretionary spend for the second half of the year at the same levels six months ago.
Ms. Julienne Loh, Vice President, Country Manager, Singapore, MasterCard Worldwide, said, "Our research shows that the mass affluent in Singapore are practical individuals who understand the value of saving for the future, but balance this with their appetite for discretionary luxuries such as dining and entertainment, fashion and accessories, and personal travel. We are pleased to work with Citibank to launch the Citi DIVIDEND WORLD MasterCard specifically for this segment of consumers. It gives them both savings with cash back on their purchases as well as exclusive lifestyle benefits which ensure that cardholders continue to enjoy the best things in life.
"Affluent consumers have a strong desire for personal attention, best-in-class service and memorable lifestyle experiences. The World MasterCard premium tier offers a suite of benefits and privileges designed to suit their discerning tastes, including access to MasterCard Moments, an online repository of retail, travel and entertainment privileges. Cardholders also enjoy unsurpassed global acceptance," she added.
The card benefits are designed to support the needs of the card members. The survey results indicate that Travel remains one of consumers' top three reasons for saving as well as a top purchasing priority. In line with these findings, spending patterns of Citi card members also indicate that Travel & Hotels are amongst the top categories of spend. The Citi DIVDEND WORLD MasterCard aptly combines cash back across all categories with exclusive travel, spa and retail benefits not just in Singapore but also across the region.
Overall, the Citi card members' top preference for spend is in dining, with Bars & Restaurants being the top category. The MasterCard Worldwide Survey also supports this trend. With Citibank Gourmet Pleasures, Citi's credit card dining privileges program, Citi DIVDEND WORLD MasterCard card members enjoy unmatched dining deals at over 1,000 merchants - Singapore's widest merchant selection. In fact, customers benefit even more with the Best Deal Promise, whereby they will be refunded the difference if they find a better discount at any of the Citibank Gourmet Pleasures preferred restaurants.
Citi DIVIDEND WORLD MasterCard®: Cash back value with premier lifestyle privileges for the first time
The Best Cash Back
The Citi DIVIDEND WORLD MasterCard offers customers the best cash back value of up to 5% with every dollar spent, as well as cash back across all categories of spend. As customers enjoy the cash back on transactions such as petrol, dining, groceries and pharmaceutical purchases, they are able to save even as they make everyday purchases. In addition, card members receive accumulated rebates in the form of a check at the end of every quarter, so they can use rebates earned in any way they choose, whenever they want.
Premier Lifestyle Privileges
In addition to the best cash back, Citi DIVIDEND WORLD MasterCard card members will also enjoy a comprehensive range of premier lifestyle privileges, including travel, retail and dining. For example, card members will receive automatic Platinum status, to A|Club, the global Accor hotel loyalty program, which offers fantastic benefits and rewards at more than 2,000 hotels around the world. This elite membership level usually requires stays of 60 nights or more over a 12-month period to qualify.
In addition, the Citi DIVIDEND WORLD MasterCard gives card members the ultimate spa benefits, including discounts of up to 30% and other privileges at spa chains around the world, such as Banyan Tree, Mandarin Spa and Angsana Spa. For the frequent flyers, the Citi DIVIDEND WORLD MasterCard also gives them exclusive experiences such as complimentary one-year membership to DFS Galleria's Platinum Services Club - where they will enjoy unrivalled shopping experiences in gateway cities around the world - as well as offers and privileges at JetQuay CIP Terminal, the private, dedicated airport terminal at Changi Airport. Card members also enjoy exclusive dining offers at InterContinental, Crowne Plaza and Holiday Inn hotels in Singapore and Malaysia, such as 1-for-1 buffet dinner offers at selected restaurants at InterContinental Singapore and Crowne Plaza Changi Airport.
Summary of Citi DIVIDEND WORLD MasterCard® Benefits:
The Best Cash Back
The best cash back value of up to 5% with every dollar spent
Cash back across all categories of spend
The highest cash back for petrol transactions at 5%, on top of any prevailing site discount at any & all petrol stations
Up to 14.5% savings for petrol transactions at ESSO
Additional everyday discount of 3% at all petrol stations, and 5% at Esso
2% cash back for dining, grocery, and pharmaceutical purchases
0.5% cash back for all other retail purchases
Receive cash back in the form of a check every quarter
Premier Lifestyle Privileges
Platinum A|Club loyalty membership card - Accor Hotels global loyalty program
Stay 3 consecutive nights for the price of 2 at over 100 Accor Hotels in Asia, including complimentary room upgrades and late checkouts
The ultimate in spa benefits, including discounts of up to 30% and other privileges at spa chains in Singapore and around the world, e.g. Banyan Tree, Mandara Spa, Angsana Spa, Aramsa, Spa Espirit & Spa Elements
Exclusive dining offers at IHG hotels in Singapore and Malaysia, such as 1-for-1 dinner offers at the Olive Tree at the InterContinental Singapore, The Melting Pot at the Holiday Inn Atrium and Windows on the Park at the Holiday Inn Parkview
Complimentary coffee and 1-for-1 gourmet treats from tcc - the coffee connoisseur
Golf privileges at the region's most popular fairways, including 50% off at participating clubs
Exclusive experiences such as complimentary one-year membership to DFS Galleria's Platinum Services Club, where card members will be treated to unrivalled shopping experiences in cities around the world
Offers and privileges at JetQuay CIP Terminal, an elite and dedicated airport terminal at Changi Airport.
Guaranteed best-in-class dining deals at over 1,000 merchant locations -Singapore's widest merchant selection - with Citibank's credit cards dining privileges program Gourmet Pleasures
*Terms and conditions apply. Please refer to www.citibank.com.sg for more information.
About the MasterCard Survey on Consumer Purchasing Priorities
The MasterCard Survey on Consumer Purchasing Priorities, released twice yearly, provides valuable insights into consumers' discretionary spending priorities for the six months ahead. The latest survey was conducted from 23 March to 18 April 2009 and involved 9,211 consumers from 21 markets. Data collection was via personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary. The Index and its accompanying reports do not represent MasterCard financial performance.
