GameStop Bows Branded Credit Card10 Sep, 2014 By: Erik Gruenwedel
Card targets chain’s 28 million loyalty members to mine incremental revenue from pricey new releases as well as track consumer habits.
With the average price for a major new-release physical video game around $50, and expected to reach $60 by the end of the year, according to Wedbush Securities’ Michael Pachter, GameStop Sept. 10 announced it is rolling out a branded credit card that could ease any sticker shock concerns.
Partnering with Alliance Data Systems Corp., Dallas-based GameStop seeks to mine incremental revenue from more than 28 million PowerUp Rewards loyalty members.
The GameStop PowerUp Rewards Credit Card enables cardholders to make purchases with the card in-store and online, includes promotional financing for larger purchases, online and mobile platform card management and payment services, as well as no annual fee and exclusive offers for savings throughout the year.
In addition, Alliance Data will enable GameStop to develop a better understanding of its cardholders through analysis of purchase behaviors. As part of the agreement, GameStop will have access to Alliance Data’s advanced set of digital and mobile capabilities connected to the card program.
“Many of our customers have asked us for a financing solution to extend their purchasing power. We are pleased to give them one in time for the holiday season,” Frank Hamlin, chief marketing officer at GameStop, said in a statement.
Upon the opening of an account, PowerUp Rewards Pro members will receive a one-time award of 15,000 bonus points, and PowerUp Rewards Basic members will receive a one-time award of 5,000 bonus points.
PowerUp members earn points for purchases and get access to exclusive offers, news, and events. The Pro membership is a paid membership that enables members to earn more points and privileges. PowerUp Rewards points can be redeemed for products, gaming gear, limited edition collectibles, hard-to-find gaming items, discounts on merchandise, and coupons for additional savings.
With a significant number of PowerUp members being minors, and thus legally prohibited from owning a credit card, GameStop is aiming the promotion toward adult members and/or parents, according to a spokesperson.
“There are many parents that this [card] will appeal to — particularly since it enhances benefits/rewards associated with an existing PowerUp Rewards member,” GameStop’s Shelley Whiddon said in an email. “Just because a minor cannot apply for a credit card, they are still able to be a PowerUp Rewards member.”