LivingSocial plans to launch first credit card to attract repeat customers

Sina Science and technology news Beijing time March 2 morning, the United States the second largest group buying site LivingSocial CFO John Bax (John Bax) said in Thursday, LivingSocial plans to launch the first credit card in the next few months to help merchants better attract repeat customers.

He said LivingSocial will work with Visa and JPMorgan's chase to issue the credit card to livingsocial U.S. users. The credit card will be free of annual fees.

If the cardholder carries out 10 credit card transactions within one months, it will be able to get 10 points named deal Bucks. These points can be used to buy the purchase items on the LivingSocial website and other services offered by the company, such as discounted travel products.

For the merchant, this project will bring short-term funds. He declined to give more information, but said the joint credit card and integration program would provide a number of functions, including a certain interest-free period, as well as feedback activities during the consumption of certain businesses.

"We will use this as a platform to encourage people to go shopping again," said Bacchus. Small and medium sized local businesses will not be required to issue credit cards or carry out integration projects. We will bring them convenience. ”

The business model of group buying is being fiercely criticized. Industry insiders believe that group buy to encourage consumers only in the case of a discount to the merchant consumption, can not bring enough profits to the merchant. To address this problem, Groupon and LivingSocial have devised a variety of incentives to entice consumers to spend more than once. (D-Gold)