Remember this logo? We examine the decline of Australia's first credit card and find out what went wrong.
For a long time the Bankcard logo was positioned proudly next to Visa and MasterCard on merchant acceptance signs across Australia. Then it quietly disappeared. So whatever happened to Bankcard?
Bankcard was significant because it was Australia's first credit card. It was introduced in 1974 as a joint venture between nine Australian banks. It dominated the credit card market without competition until the mid-1980s when its international competitors Visa and MasterCard arrived.
Bankcard introduced credit cards to New Zealand in 1983.
The Bankcard logo became an instantly recognisable symbol, however at its introduction, some people felt the logo was the 'sign of the devil' as the ‘b’ inside the logo resembled three sixes!
By 2004, there were 2.3 million Bankcard customers and the card was accepted in over 350,000 locations. The company reported an annual charge volume of $5.5 billion AUD.
Then in 2005, Bankcard ceased its New Zealand operations. In 2006, the company announced the card would be phased out, citing competition and declining market share to Visa and MasterCard. A spokesperson for the company, Garry Moffat, said that as an Australian-only credit card, Bankcard was no longer attractive to a market seeking internationally-accepted cards.
Financial institutions transitioned their Bankcard customers onto Visa and MasterCard alternatives. The card continued to be accepted by merchants until the end of 2006.
