Banks in Singapore are locked in a fierce battle for the hearts, minds and wallets of credit card holders. At stake is billions of dollars worth of billings - in the first three quarters of this year, credit card billings hit S$8.8 billion (US$5.2 billion).
Credit cards give banks considerable income; DBS Bank earned $66 million from fee income from cards alone in the first nine months of this year.
Rival United Overseas Bank (UOB) earned $64 million in the same period.
And this doesn't include the income banks get from charging 24 per cent interest to people who roll-over their balances.
It's no surprise, then, that banks spend a lot of money to get new cardholders.
UOB will spend over $10 million this year promoting its cards. Standard Chartered is spending $6 million pushing one card alone, its Manhattan card.
The humble credit card has become much more than just a convenient way to pay for things. Citibank's Clear card, for example, allows clubbers to cut the queue at the most popular clubs. UOB's MTV card allows access to MTV events. Maybank has a card which glows in the dark while UOB has launched a mini Visa card so small they had to find new ways for people to carry it.
Of late, the war has been over the hyper-exclusive black cards. Both UOB and Citibank have issued black cards that are pitched above the platinum card. DBS jumped in the fray with a black card that was pitched way below the platinum card but just above the gold, while Standard Chartered issued a black-accented card laden with plenty of attitude.
Carlyle Brand Consultants CEO Joseph Baladi describes the market as both cluttered and aggressive: "Banks have tripped over themselves in an effort to out-do one another in offering incentives, gifts, discounts, etcetera. The end result - very much like ruthless price-cutting - has been detrimental to most brands."
On the rash of black cards on the market, Baladi feels that none of the banks has done a good job. "Black cards are disguised as another credit card ... Even one card's effort to differentiate itself with a lower income threshold is somewhat suspect. Great caution needs to be exercised over how the image of the card is built. Making it a card lots of people can easily secure somewhat runs counter to the whole aim of attracting customers based on a modicum of exclusivity."