Online retailer Kogan.com inks an agreement with Citigroup to launch a Kogan Money Credit Card by 2019. The news sent the Kogan.com shares to jump over 8.11% in morning trade today.
Through an announcement dated 26 November 2018, Kogan.com Limited (ASX: KGN) told that the company has entered into a multi-year agreement with Citigroup Pty Ltd to launch a Kogan Money Credit Cards. The partnership will see Citi as an issuer of the credit card and Kogan.com as a marketer and distributor of it.
Citi, positioned as world’s largest credit card issuer, will provide the infrastructure for the issuance of card along with the provision of servicing, regulatory and compliance oversight, back-office processing, and branded digital platform.
Kogan Money Credit Card is said to be competitively priced which will offer attractive and unique ‘loyalty incentives’ for customers to shop on company’s online platform Kogan.com and elsewhere. The price-focused strategy underscores the company’s image renowned for price leadership through digital efficiency.
David Shafer, Executive Director of Kogan.com said “the partnership with world’s largest credit card issuer Citi will be a clear win for both Kogan and Citi customers.” Mr. Shafer added that the Kogan Money Credit Card will provide outstanding value to Aussie consumers when shopping on Kogan.com and elsewhere.
Partners to the agreement, Kogan.com and Citi, will reportedly share in the ongoing economics and Kogan.com will provide ‘loyalty fulfillment’ while marketing and distributing Kogan Money Credit Cards. Kogan’s management further believes that collaboration with Citigroup will offer the ability to leverage the company’s digital efficiency that will deliver excellent value for money to Aussies.
The cards are expected to be out in the market in 2019.
The announcement for the launch of Money Credit Card comes in line with recent initiatives undertaken by the company. One of its latest developments outlines the launch of Kogan Super in partnership with superannuation expert Mercer.
Kogan Super is a new no-frills, ultra-low fee Australian superannuation fund which will be branded and marketed by Kogan.com whereas the partner Mercer will provide administration, investment management and customer services.
Known for their innovative and cost-effective superannuation services, Mercer is a subsidiary of NYSE listed insurance company, Marsh & McLennan.
At the time of writing, 26 November 2018 (1:00 PM AEST), Kogan.com share price is up 7.801% to trade at $3.040. The stock is currently trading at a Price to Earnings ratio of 18.680 x with market capitalization of $264.26 million.
However, over the past one year the stock price has fallen by 33.18% and in the past 3-months the stock has witnessed a negative performance change of as much as 57.66%.
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