Barclaycard Tightens The Belt

Today the Telegraph reports that Barclaycard is rejecting about 55% of new credit card applicants and is also cutting the credit limits for users. Although the widely reported credit crunch may be to blame for the increase in rejected card applications, Barclaycard are reported to have been lowering credit limits for 500,000 of its customers over the past 18 months.

Barclays OnePulse

Barclaycard's three-in-one Oyster, credit and contactless payment card will be called OnePulse, it has announced. We've blogged before about Barclaycard and Oystercard and this annoucement confirms our suspicions.

The OnePulse card has three separate functions; an Oyster smartcard for travel on the tube, bus and some national rail services; ‘wave and pay’ technology for purchase of low-value items (under £10) and a standard chip-and-PIN credit and debit card.

Expect to see the OnePulse card this Autumn.

Barclaycard Breathe Credit Card

We've received notice from our partner networks that Barclays are to replace their charity credit card with a new card entitled the Breathe Card. The Barclaycard newsroom describes this new product as such:

Barclaycard has announced plans to launch the first UK credit card that donates 50 per cent of its profits to give people across the country a greener card option. The Barclaycard Breathe credit card will see Barclaycard:

- Donate 50 per cent of Barclaycard Breathe profits to environmental projects dedicated to reducing carbon emissions around the world.

- Offer cardholders discounts and lower rate borrowing on green products and services.

- Take a greener approach to account management including online statements and recycling of card plastics.

Barclaycard Breathe states that it is donate a minimum of £1 million to environmental projects in its first year. The company will then donate 50 per cent of profits from the card in following years.

Barclaycard Breathe aims to help consumers make greener choices by offering discounts and lower rates on green products, for example energy saving products and greener transport options.

The card itself offers a greener customer experience with no paper statements - though note that the egg card has operated this way for several years. Marketing will be directed online and the cards themselves are made from PETg - a more environmentally friendly alternative to current PVC cards. A recycling scheme for old cards will be available when new cards are issued.

We're expecting to offer the card soon. When it's available you'll find it on our dedicated breathe card page.

Wave and Pay

I've read a few reports about Barclaycard jumping in to bed with the company that issues the Oyster Card, Transys. The Oyster Card is used in London I gather as a prepaid travel pass card that is contactless - the card isn't swiped, it's a contactless smartcard that is waved over a sensor and your card is automatically debited for the price of your journey on the train. More than six million Oyster cards are used by Londoners.

Barclaycard are joing forces with Oyster to create a wave and pay card that allows consumers to pay for small value transactions (under £10). For more expensive purchases a PIN will still need to be entered.

Currently, more than 75% of cash transactions are for less than £10, compared with about 20% of credit card transactions.

If the Barclaycard trial goes well in London the new wave and pay card will be rolled out around the UK.