Marbles Vs. Egg (10/6/99)
FULL STORY:
Two U.S. based card issuers have started a bloody Internet card war for the
Brits. It all comes down to marbles versus egg. Household International's U.K.
bank, HFC Bank, announced this week it will unveil an Internet-based credit
card in about two weeks. The new card, to be called 'Marbles', is the second
Internet-based card to be launched in the U.K. Last month Prudential Corp. Plc
introduced the 'Egg' credit card through its British Internet bank under the
same name. Both cards will accept applications online and will deliver card
statements via the Internet. However the HFC 'Marbles' card will also offer
support and accept applications over the telephone. Prudential's 'Egg' credit
card is exclusively an online card product. 'Marbles' is offering a six-month
5.9% intro rate followed by a 14.9% APR. The 'Egg' card currently offers a
six-month 4.5% intro rate followed by a rate as low as 9.9%. 'Egg' also offers
up to a 2% rebate for online purchases. HFC will reportedly spend more than
US$16 million to promote the 'Marbles' product. The card will be extensively
promoted over Britian's largest internet service provider, Freeserve Plc. HFC
has signed a marketing agreement with Freeserve to pay US$8 million over five
years plus a fee for each new account acquired and a portion of the
interchange fee.
But there is another twist to the story use of the "marbles" name.
Believe it or not, another U.K. firm not only trades under the 'Marbles' name but also
owns the domain name www.marbles.co.uk. HFC is
using the domain name www.getmarbles.co.uk. The
'Marbles' company is a tiny public relations firm in London which has traded
under the name for eight years and has owned the marbles web site for three
years. HFC has apparently secured trademark rights to "marbles" and "marbles
card". The 'Marbles' company said this week it does not intend to change its
name or web site but regrets the confusion created for consumers who come to
the wrong web site. HFC's main competitor for the new "marbles" credit card is
the "egg" VISA issued by Prudential Corp. Plc. Prudential owns
www.egg.com. The egg card has been a smash in the U.K.
since its launch three weeks ago.