Swipe that plastic more and get more cash. That is the pitch from local lender OCBC Bank, which has launched its first cashback credit card.
The OCBC 365 Credit Card will offer card-holders up to $960 cashback annually – the highest in Singapore – for a minimum spend of $600 per month across various merchant categories.
Among others, these categories include 6 per cent cashback for weekend dining, 5 per cent for petrol and 3 per cent for online spending and groceries.
At a media briefing yesterday, Desmond Tan, OCBC Bank’s head of Group Lifestyle Financing, said: “Through research, we know that the cashback feature ranks high in the minds of consumers… We have chosen to reward them more when they spend on areas where they are transacting more frequently… dining, petrol, groceries and online spending.”
According to a study by OCBC Bank covering 4,700 consumers last year, close to 60 per cent of the respondents said that their primary card was a cash-rebate or cashback credit card.
Citing industry figures, Mr Tan said that a MasterCard study this year found that 98 per cent of Singaporeans had dined out in the past six months, with 66 per cent checking out card deals at bill-payment time.
Online shopping was also poised to grow, with the online shopping market in Singapore expected to hit $4.4 billion next year, according to a study by e-payment firm PayPal, said Mr Tan.
Tying up with Visa, the OCBC card will also feature payWave contactless technology, where customers can make payments by waving their card over a reader instead of signing a receipt or entering a PIN number.
Although other banks, such as Citibank, also offer rebates according to merchant categories, the OCBC 365 Credit Card offers the highest dining rebates and monthly rebates, capped at $80 per month.
Last year, OCBC Bank’s year-on-year growth in card billings stood at 14 per cent, compared to the industry’s rate of 8.3 per cent.
The bank hopes to grow its annual card billings at two or three times the rate achieved by the market in the next three years.
Mr Tan expects the newly launched credit card to account for at least 30 per cent of this growth.
Corporate finance officer Ryan Kuan said he found the rebates according to merchant categories helpful.
The 26-year-old said: “I like the idea of enjoying 6 per cent cashback for weekend dining. I spend the most on dining, so this card would be very helpful for me.”
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Up to $960 cashback with new OCBC credit card