Citi's new credit card

So Citi (Citibank) has finally announced a new credit card that needs no minimum income requirement, targeting young students and adults. While there are some concerns on students going on a spending spree risking payment default which could end up with rolling interest rates, it does offer another function.

The card serves as an alternative to payment through NETs, the one topic that I had discussed greatly in my blog. Now, anyone in Singapore can get a Citi clear card. It makes more sense for all shops in Singapore to install Visa/Master transaction processors and abolish NETs. Moreover, there is great benefits in holding the card.

Of course, as a trade off to keeping the risk of default payment low, credit limit is low at S$500 a day. The 28% interest rate, which is higher than other credit cards, also seems unattractive. But with the introduction of this innovative product, competition is bound to result in more such cards to be issued by other banks. And this, if popularity among users is to be gained, may spell an end to NETs in the near future.