Citicard Bets on Google Checkout

Asaf Buchner | June 29, 2006, 09:47 AM

With credit card customers holding multiple cards in their wallet, issuers struggle to make their card the “chosen one.” A current Citicard promotion gives their credit card holders a $5-10 monetary incentive (depending on the card) when they register their Citi credit card with Google Checkout and make a first purchase. Their hope is that if (or once) Google Checkout is successful, consumers will continue to use their default payment option, which will be a Citi credit card.

Hypothetically, Citi could have run this promotion without Google’s consent or co-operation. However, since this is not the case, there must be something in it for Google. Citi will probably advertise the service to the card members, increasing awareness and sign-up numbers. In addition, I suspect Citicard gave Google better a deal on the interchange fees...