America Online, First USA Join In Groundbreaking Five-Year Agreement Valued At Up To $500 Million
February 3, 1999 07:31 AM
DULLES, Va. & WILMINGTON, Del.--(BUSINESS WIRE)--Feb. 3, 1999--
AGREEMENT MARKS INTERNET'S LARGEST ADVERTISING AND MARKETING PARTNERSHIP
Agreement Makes First USA Exclusive Marketer of Credit Card Products and Services on AOL in the United States and Canada
World's Leading Internet Service Joins With Nation's Largest Credit Card Lender to Offer Consumers Value and Convenience Online Across a Range of Credit Card Products and Services
America Online, Inc. AOL , the world's leading interactive services company, and First USA, a subsidiary of BANK ONE CORPORATION and the nation's largest Visa and MasterCard lender, today announced a five-year agreement that represents the Internet's largest advertising and marketing partnership to date.
America Online and First USA were the first companies to offer a major online co-branded credit card with the AOL Visa card, established in 1996, and this agreement extends their highly successful relationship. With this agreement, First USA becomes the exclusive marketer of credit card products and services on AOL, the CompuServe service, AOL.COM and AOL Instant Messenger in the United States and Canada, and will also market products and services on AOL's Digital City. The agreement is anticipated to generate up to $500 million if expected thresholds are met, and contains significant guaranteed revenue to AOL and significant marketing commitments to First USA.
The AOL relationship will enable First USA to generate millions of customers by marketing to the largest community in cyberspace, creating one of the most valuable co-branded card portfolios in the world. In addition to being the exclusive provider of credit cards for AOL users, First USA products will receive an extensive variety of advertising and promotions across the AOL family of brands.
Bob Pittman, President and Chief Operating Officer of America Online, Inc., said: "First USA is both a leader and an innovator in the credit card field, and their commitment to such a significant marketing effort across several of AOL's brands underscores their acknowledgment that more and more mass market consumers are attracted by the benefits and convenience that the online medium delivers. AOL's members represent the largest consumer audience in cyberspace, and this agreement is an excellent example of how we help make their everyday lives easier by providing them with the credit card resources they need all in one place. "
Pittman continued: "The 1998 America Online/Roper Starch Cyberstudy showed that the convenience and ease-of-use of handling personal finances online made it one of connected consumers' most popular activities. For nearly three years, our successful partnership with First USA has provided AOL members with high-quality credit card products and services. In this historic alliance with First USA, we are able to offer even more benefits and convenience to both AOL and CompuServe members and Internet consumers who use AOL.COM, AOL's Digital City, and AOL Instant Messenger."
"First USA has been in the forefront of recognizing the potential of the online medium," said Jan Brandt, AOL's President of Marketing. "They have been a close partner of ours since 1996, and the renewal and expansion of our current agreement proves the real power and value that the interactive medium offers to key marketers and advertisers dedicated to reaching the mass-market consumer."
Richard Vague, Chairman and CEO, First USA, said "America Online has long been recognized as the Internet's leading interactive services company, helping to set the standard and direction for the growth of online services. We are tremendously excited about our expanded relationship with them and the opportunity it presents. First USA's favorable experience with the Internet has led us to successfully integrate it into our marketing strategy. Our new and expanded relationship with AOL evidences our continued commitment to the Internet as an effective marketing channel. This marketing relationship better positions First USA to capitalize on the full power of the Internet channel, while providing AOL's customers with high-quality credit card products that meet their specific needs."
AOL co-branded credit card users receive:
-- No annual fee, 3.9% introductory interest rate and one of the
lowest Annual Percentage Rates (9.99% fixed APR) in the market
for a co-branded reward program;
-- The option of applying for co-branded First USA products and
services online;
-- Instant online application and instant credit and approval
notification for those who qualify;
-- The opportunity to earn AOL co-branded card reward points;
-- The immediate option to transfer balances online from another
credit card with no balance transfer fees;
-- Online customer service: The ability to view previous bills
online, print account summaries, view charges, and receive
balance updates; a 24 hour online statement access and online
bill payment option; E-mail customer service as well as 24/7
telephone support; and the ability to change address and contact
telephone numbers, and request increased credit limits and the
issuing of additional credit cards; and
-- An online shopping guarantee against unauthorized charges.
About America Online
America Online, Inc., based in Dulles, Virginia, is the world's leader in branded interactive services and content. America Online, Inc. operates two worldwide Internet services: America Online, with more than 15 million members; and CompuServe, with approximately 2 million members. America Online, Inc. also operates AOL Studios, a leading builder of Internet brands for new market segments. Other branded Internet services operated by America Online, Inc. include AOL.COM, the world's most accessed Web site from home; Digital City, Inc., the No. 1 branded local content network and community guide on AOL and the Internet; AOL NetFind, AOL's comprehensive guide to the Internet; AOL Instant Messenger, an instant messaging tool available on both AOL and the Internet; and ICQ, an instant communication and chat technology on the Internet.
About First USA
First USA (www.firstusa.com), a subsidiary of BANK ONE CORPORATION, is the nation's largest Visa and MasterCard lender. First USA offers credit cards for consumers and businesses under the First USA, First Card and Bank One names and on behalf of more than 1,500 marketing partners. BANK ONE CORPORATION, headquartered in Chicago, is the nation's fifth-largest bank holding company with assets of more than $250 billion. BANK ONE offers a full range of financial services to commercial and business customers and consumers.
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