Modest spending on Myer cards

Myer Holdings yesterday provided some glimpses into its payment card business with the publication of the prospectus for the forthcoming initial public offer.

The average annual spend for customers with a Myer Visa card, at Myer only, presumably, is $2562. How much spending there is on average on each card was not stated. GE Money is the issuer of this card.

This compares with the average annual spend on all credit cards, according to RBA data, of $13,000.

A customer with a Myer One loyalty card spends about one third as much each year at Myer as someone with a Myer Visa.

Myer said there were 235,000 Myer Visa Card and Myer Card holders at present.

The number of Myer One card holders does not appear to be in the prospectus.

The retailer said it distributed $43 million in Myer gift cards as rewards to this customer segment.

Myer said it was targeting 550,000 new cardholders across its loyalty and credit card business in the 2010 financial year, with 50,000 of these targeted as new Visa card customers.