UBS exits Swisscard and hands over to Amex
Published: Monday, Oct 21st 2024, 11:30
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UBS is exiting the credit card issuer Swisscard. The joint venture, which was previously held in equal shares with American Express and was acquired by UBS through the takeover of Credit Suisse, will be taken over in full by American Express. This will not change anything for Credit Suisse credit card customers for the time being.
UBS is selling its 50 percent stake in the joint venture to American Express Swiss Holdings GmbH (Amex), as Swisscard announced on Monday. Amex thus becomes the sole owner of Swisscard.
A change had already become apparent in the summer. Following the takeover of Credit Suisse by UBS, Credit Suisse and American Express did not extend their existing agreement on the jointly held Swisscard.
Nothing should change for cardholders
According to the information provided, nothing will change for credit card holders. The credit card portfolios marketed under the Credit Suisse brand will be transferred to UBS, according to the Swisscard press release. In addition, Swisscard will continue to issue the remaining card portfolios under the licenses of American Express, Mastercard and Visa.
In its own statement, UBS "fully" committed to its credit card business. "As a long-standing issuer, the credit card business is of central importance to the bank and UBS will continue to consistently pursue its integrated strategy." It describes the business as an important strategic pillar and intends to offer CS clients its own range of UBS credit cards and services in future.
However, issuing credit cards in Switzerland via Swisscard is not compatible with the existing operational processes and strategic priorities of UBS as the legal successor to Credit Suisse.
Meanwhile, Amex intends to remain loyal to Switzerland via Swisscard and continue to expand its business, as the credit card issuer writes in its own statement. Merchants can continue to use the cards issued by Swisscard as normal.
Swisscard does not disclose business figures
At the request of AWP, Swisscard does not want to reveal how many Swisscard credit cards are in circulation in Switzerland, nor how much turnover the company generates or how high the transaction volume is. "Swisscard does not communicate any business figures as a non-listed company," writes a spokeswoman.
The homepage shows that Swisscard offers 31 different cards to private customers, including cards from Amex, Mastercard and Visa and credit cards from Credit Suisse and the airline Swiss for private customers. In addition, Swisscard offers 23 different cards for corporate customers, including cards from Credit Suisse and Swiss.
Swisscard employs over 650 people for the various payment solutions and services for customers. According to the Swisscard website, more than 400,000 users use the Swisscard app. However, this figure does not allow any conclusions to be drawn about the number of customers, the spokesperson explained.
Other credit card issuers include SIX, Bonuscard, Cembra Money Bank, Postfinance, Corner Card and UBS. Credit cards are usually offered under the name of banks, well-known retailers such as Migros and Coop, or even airlines and associations. In addition to those already mentioned, various cantonal banks, Viseca and Raffeisen Bank are also among the providers.
Credit card in 2nd place in terms of sales
The credit card as a billing product follows in second place in terms of sales, clearly behind the leading debit card, as can be seen in the latest Swiss Payment Monitor 2024. This is published twice a year by the University of St. Gallen together with the ZHAW.
Around 20 percent of total expenditure is paid for by credit card, with cash still accounting for a good 13 percent. In terms of the number of transactions, however, cash is in second place behind debit cards. Mobile payments now generate a similar amount of revenue as credit cards.
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