Consumer Payment Card News

KMART AND BENEFICIAL NATIONAL BANK USA

Kmart Corporation has expanded its new Kmart Credit Card to its 2,147 stores across the nation. The card is administered through Beneficial National Bank USA (BNB USA), a subsidiary of Beneficial Corporation.
Kmart and BNB USA piloted the card in Kmart and Super Kmart stores in 11 test markets this year. Eligible customers will receive “Kmart rewards” good for merchandise in any Kmart and Super Kmart stores. Rewards will be issued each November in time for holiday shopping. Kmart Credit Card customers also receive advance notice of special promotions. The Kmart Credit Card has no annual fee and features low monthly payments.

Finn M.W. Caspersen, chairman and chief executive officer of Beneficial Corporation, noted that, “Based upon the results of the test program, Beneficial National Bank USA and Kmart look forward to a long and very rewarding partnership. BNB USA has the systems to offer on-the-spot approval for Kmart’s eligible customers. The incentive program provides for customer awards in an amount equal to as much as 6 percent of all annual eligible purchases on the card, one of the richest programs in the nation.”

“Our customers recognize the added convenience of shopping with the Kmart Credit Card and that the ‘Rewards’ program provides them with even greater savings for their shopping dollar,” said Floyd Hall, Kmart chairman, president and CEO. “Customer response to the Kmart Credit Card test has been excellent. In fact, during the test, Kmart card holders shopped our stores more often and their average transaction was higher than that of non-card holders.”

Kmart Corporation, with sales of $34 billion in 1995, serves America with 2,147 Kmart and 168 Builders Square retail outlets. In addition to all 50 states, Puerto Rico, the U.S. Virgin Islands and Guam, Kmart operations extend to Canada and, through a joint venture, to Mexico.

Beneficial Corporation is a $15 billion, New York Stock Exchange-listed financial services holding company. Beneficial National Bank USA has more than $3 billion in total receivables and a cardholder base of more than 5 million customers. Subsidiaries of the Company provide financial services through their various consumer-finance, credit-card, banking and insurance operations located throughout the United States, Ireland and Germany.

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