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4/10/2008

More competition for Cashcards

It was reported in the ST that EZlink issued 8 mil cards while Nets issued 6 million cards. Both charged $5 per card while EZlink added a $3 deposit. So is EZlink card more expensive than Nets' Cashcard? The credit card issuers are planning to intrude into the cashcard biz. That may give consumers a wider option on whose card to use. Incidentally, credit card companies issued their cards free to their users. If they can do it, why can't the cashcard companies do likewise? Next time buy chicken rice, got to buy own plates and forks and spoons as well. But with 6/8 million cards each at $5 a piece that is $30 mil and $40 mil to each company. Too attractive to resist. Don't forget the $3 deposit or $24 mil collected and can be used for investment or collect more interest.

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