Barclays to introduce Irish gold card

Barclays bank is preparing to introduce its gold card in the Republic, offering consumers a wider choice of credit card.

The British bank has recently introduced a Manchester United-branded credit card which offers incentives to football fans and carries a rate of interest of 16.9 per cent.

A spokeswoman for the bank would not disclose the intended rate of interest to be offered on its gold card in Ireland but suggested the card would largely mirror the offering in the UK.

The Barclaycard Gold has a minimum credit limit of £2,500 (€3,600) and offers a standard interest rate (APR) starting at 11.9 per cent. It provides eight weeks' interest-free credit when an account is paid in full and on time and the cards are available to individuals aged over 18 years.

The spokeswoman said the bank had identified an opportunity for growth in the Irish market as the number of individuals holding credit cards here was likely to expand over the next four to five years. "There is quite an opportunity for us to win customers in a market which is dominated by two key players," she added.

Barclaycard is the best known bank card in the UK although the bank's chief executive, Irish-born Mr Matt Barrett, caused some controversy by saying that he did not borrow on credit cards because it was too expensive.

The arrival of a new entrant to the Irish credit card market should be good news for consumers and help to reduce the rates of interest currently being charged here.

There are 1.8 million credit cards issued in Ireland. According to the Irish Bankers' Federation, there were 86 million credit card transactions in the Republic last year and the value of those transactions amounted to €7.6 billion.

On average, Irish consumers spend €88 per credit card transaction. Barclays has a call centre in Ireland that handles some of its international business and will work with new Irish customers.

Arrangements are being made whereby Barclaycard Gold customers will be able to make payments to the bank by post, online, through direct debit or through the Post Office.