Google via AdWords has come up with a new credit card system for business purpose, which is currently being offered to only a few selected search advertisers in the US. These advertisers can avail this offer and register for this Business Credit Card. The invites for the said card started last Wednesday and it was via email. Google restrained from disclosing the number of invites which would be distributed. This card can however only be used for the purpose of buying AdWords features and advertising. The buyers will have to will have to make the payment at an interest rate of 8.99% but there is no fees which would be charged annually.
Google’s VP of global online sales, Claire Johnson made a comment for Reuters which read that this card was basically designed to help the growth of medium-sized as well as small businesses who have advertised on Google but when it comes to making a bulky investment, for an ad campaign which might be for any season where people like to cash in big sales like for example Halloween or Valentine’s Day, they fall short of funds to enrich their ad campaign. The issuing party in this case would be World Financial Capital Bank who will issue these AdWords MasterCard.
Talking about the maximum and minimum credit limits, Google will have custom based limits which would be different for each and every cardholder. Google didn’t pass on the details as to how many people will be in the line for this credit. However it was known that the credit line for this card would be equivalent to that of a department store. The point still which plays good for Google is that the search engine giant will rack up handsome earnings from the interest on balances. Google stated that this card is a facility for those who face monetary crunch and are unable to get the required credit which is hard as the economic environment is tough to penetrate.
Google has a huge sum of liquid assets which can be ascertained from the marketable securities and importantly cash on hand this company has which amounts to around 39 Billion USD which was referred by Google’s Treasurer, Brent Callinicos. This is still the first time Google is planning to act as a lender. It has now planned this source which can be cheaper in its own way but to look it at a wider prospective, it concentrates mainly on AdWords which is again restrictive and availing the related Google services and features would not be allowed even. Reuters additionally pointed out that this card kills one’s potential to make an airline miles with purchases.
SMB Group’s partner, Laurie McCabe commented for InformationWeek wherein she presumed that this card facility would not be of great use when it comes to considering the minimal search budget users or even the occasional advertisers. McCabe continued saying that if one has the required ability to grab on the points which would be converted into discounts for purchasing more AdWords, it could be a reason to avail it. She however concluded saying that it would really make sense if Google would have had lower interest rates.
Looking at the competitive point of view, Facebook has left no stone unturned to woo the online advertising world and is accordingly rocking on its part and even a collaborated Microsoft and Yahoo turn the heat on for Google to make a mark.