credit card beneficial to car owners - comparehero

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Insights - Credit Cards for Car OwnersJune, 2016

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1. Definition & Potential Customer Segments

2. Overall Landscape

3. Research Methodology

4. Comparison of Basic Credit Cards

5. Overall Conclusions

6. Actual petrol savings possible

7. Recommendations

Table of Contents

Malaysia’s Leading Financial Marketplace

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1. Definition & Potential Customer Segments

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Definition:- Cards that offer benefits on petrol or other car-related

expenses- Typically in the form of cashback or rewards, but could

also be discounts, free insurance or other freebies.


When do we consider a credit card beneficial for car owners?

5Malaysia’s Leading Financial Marketplace

The cards for car owners can be segmented based on income

High income car owners

Low income car owners

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2. Overall Landscape

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All cards with car-related benefits are Rewards and / or Cashback cards


Rewards Cashback

6 cards27 cards

62 cards

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Credit Cards that offers petrol cashback - by bank


Bank Cards- Gold Card Mastercard- You:nique Card

- AmBank CARz Card (Gold / Platinum)- AmBank Islamic CARz Card-I (Gold / Platinum)- CIMB Cash Rebate Platinum MasterCard- CIMB Islamic Petronas MasterCard- CIMB Petronas Platinum MasterCard- Citi Cashback Card Visa- Citi Cashback Platinum Card Visa

- Hong Leong Wise Card (Gold / Platinum)- UOB One Card- UOB One Platinum Card

Bank Cards

- HSBC Amanah MPower Visa Card-I- HSBC Amanah Mpower Visa Platinum Card-I

- Maybank Islamic Mastercard Ikhwan (Gold/Platinum)- Maybank Visa Signature

- OCBC 365 Mastercard- OCBC Great Eastern Mastercard- OCBC Great Eastern Platinum- OCBC World Mastercard

- RHB Smart Value Credit Card

- Standard Chartered Just One Mastercard (Platinum)

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Credit Cards that offers petrol rewards - by bank (1/2)


Bank Cards- AEON Classic Card- AEON Gold Card (VISA / Mastercard)- Alliance Bank Platinum Card- AmBank Cosway Mastercard (Gold / Platinum) - AmBank CARz Card (Gold / Platinum)- AmBank Islamic CARz Card-I (Gold / Platinum)

- Bank Islam Card-I (Classic / Gold)

- BSN Classic (VISA / Mastercard)- BSN Classic Credit Card-I (VISA / Mastercard)- BSN Gold (VISA / Mastercard)- BSN Gold Credit Card-I (VISA / Mastercard)- BSN Platinum (VISA / Mastercard)- BSN Platinum Credit Card-I (VISA / Mastercard)

Bank Cards

- CIMB Platinum (VISA / Mastercard) - CIMB Visa Signature- CIMB World Mastercard- CIMB Islamic Platinum- Hong Leong Sutera Platinum Card- HSBC Visa Card (Platinum / Signature)- Public Bank Platinum MasterCard- Public Bank Visa Signature Card

- RHB-MyEG Credit Card- RHB Platinum Credit Card-I- Standard Chartered Platinum Card (Visa / Mastercard)- Citi Rewards Platinum Card

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Credit Cards that offers petrol rewards - by bank (2/2)


Bank Cards- Maybank 2 Cards (Premier / Gold / Platinum)- Maybank AmEx Card (Gold / Platinum)- Maybank Manchester United Visa Infinite- Maybank Visa (Infinite / Platinum)- Maybank Mastercard Platinum- Maybankard Manchester United Visa Card- Maybankard Classic (Mastercard / Visa)- Maybankard Gold (Mastercard / Visa)- Petronas Maybank Visa- Petronas Maybank Platinum Visa- Maybank Islamic Ikhwan AmEx Card-I (Gold / Platinum) - Maybank Islamic Ikhwan Visa Infinite Card-I- Maybank Islamic Mastercard Ikhwan (Gold / Platinum)- Maybank Islamic Petronas Ikhwan Visa Card-I (Gold / Platinum)

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Credit Cards that offers petrol rewards AND cashback - by bank


Bank Cards- Maybank Islamic Mastercard Ikhwan (Gold / Platinum)

- AmBank CARz Card (Gold/ Platinum)- AmBank Islamic CARz Card-I (Gold/ Platinum)

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3. Research Methodology

13Malaysia’s Leading Financial Marketplace

This research focuses on cards with exceptional petrol and / or other car-related benefits

We will lists these cards, but do not focus our research on these cards as they are not specifically tailored to car ownersWe will focus this

research on these cards as they are specifically aimed at car owners

Cards that only offer benefits for car related expenses or cards that offer higher benefits for car-related expenses than other categories

Cards that offer the same points or cashback to petrol as they do to many other categories

We have kept separate cards in our research for islamic / generic segments

Removed cards that require special eligibility to register (e.g: UUM-BSN Credit Cards) and that were clearly targeting other segments such as travel rewards, airmiles, etc

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4. Credit Card Comparison

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Credit Cards for car owners

Cashback & Rewards Card – Top 15


Hong Long WISE Gold Card

• Up to 10% cashback on petrol.• Enjoy 10% cashback on the

default Mobile spending

Standard Chartered JUST One Platinum Card

• 10% petrol cashback with minimum RM2500 monthly retail spend (RM700 must be on petrol spending)

• Low minimum income requirement (RM 24000 per annum)

HSBC Amanah Mpower Platinum Visa Credit Card-i

• 8% cashback with total monthly spending of RM2000 and above, capped at RM 50 per month

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Petronas Maybank Visa• 5x TreatPoints on weekdays & 8x

TreatPoints on weekends for every spend at Petronas Service Stations

• No annual fees • Free Maybankard Touch N Go

Zing Card

Maybank Islamic Mastercard Ikhwan Gold Card

• No annual fees• 5% rebate of petrol on Friday &

Saturday• Low minimum annual income

requirement ( RM 30,000)• 1x Treat Points for every RM 1

spend on petrol• Free Maybank Touch N Go Zing

Card

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Shell-Citi Gold Credit Card• Up to 8% rebate on Shell fuel

with monthly spending above RM 2500

• Complimentary annual fees for the first year

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AmBank CARz Platinum Credit Card

• Up to 5% cash rebate on any petrol brand transactions

• 1 CARz point for every RM 1 transaction which can be redeem for auto-related goods & services

• No annual fee

CIMB Petronas Mastercard• Up to 7% cash rebate on

Petronas spend with minimum statement balance of RM 3000

• 10% off on NISSAN Genuine Spare Parts at Nissan TCEAS Service Outlets

• 10% off on car services at Perodua Services Centre

UOB One Card

• 2% cashback on weekdays and 5% cashback on weekend.

• Additional 2% if spending at BHP Petrol under SMART$ rebate programme.

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Citi Rewards Platinum Card

• 5x Rewards point for every RM1 spend on petrol

RHB Smart Value Credit Card• Up to 5% cashback on petrol

spending, capped at RM 15

Hong Leong Sutera Platinum• 1x Reward Points for spend on

weekdays and 3x Reward Points for spends on weekends


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OCBC Great Eastern Mastercard• 1% rebate with monthly

spending up to RM 1000, and 0.5% rebate with minimum spending above RM 1000

• No cap on rebate

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Alliance Bank You:nique Cash• 3% rebate with minimum

monthly spending of RM 3000• No cap on rebate

Alliance Bank Platinum Mastercard

• 2x TBP for every RM1 spent • No expiry date


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5. Overall Conclusions

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Distribution of cashback rate on petrol spend among cashback cards

10%0 5% 8%

The cashback rate ranges from 1% to 10%. This focuses on how the cards are promoted, and does not take caps and spending requirements into account.


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Distribution of rewards points of petrol spending among credit cards

8x0 2x 5x

Most bank offers 1x Reward Points for every RM 1 spend on petrol spending.This does not take the value difference of points across banks into account


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• 13% of all cards in Malaysia offers cashback for petrol spending & 27% of all cards in Malaysia offers rewards points for petrol spending

• In total ~40% of cards offer car-related benefits

• On top of reward points & cashback, other benefits offered include discounts for car services, auto-related goods, spare parts & others.

• Almost all banks in Malaysia offer cards that target car owners to some extent (except Affin Bank, BSN & Bank Rakyat).

• Benefits in terms of cashback rate are much more diverse than reward points

• Maybank and Citibank are the only two banks that offer high benefits for both rewards and points

• Hong Leong and Standard Chartered offer highest cashback, while Maybank offers highest rewards for petrol spend

Key insights from our study


Key Conclusions

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6. Actual petrol savings possible

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Previously, we looked at the cashback rates and reward points per Ringgit spend to determine card attractiveness

This is in line which how banks market their cards and how consumers perceive them

However, given the wide range of terms & conditions (e.g. caps, minimum spend requirements, minimum income requirements), we decided to dig deeper.

Because people are also different, we decided to create 4 distinct user profiles:

1. A high volume petrol user, with medium income: this could be a User / GrabCar driver.

2. A high-medium volume petrol user with high income: this could be an executive with a job that requires a lot of driving, e.g. sales manager, real estate agent

3. A medium volume petrol user: an employee that uses his car daily for home-work travel

4. A low volume petrol user: a person that uses his/her car incidentally, e.g. for groceries, family visits

Methodology

Digging deeper…

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Profile characteristics

These are the characteristics of the four distinct profiles

Profiles High Medium-High Medium Low Rationale

UsageHeavy usage for

personal & business. Pump petrol every 2

days in a week or more

Medium-heavy users mainly for work-related

travels. Frequent travellers.

Average uses, pumps petrol once a week.

Rare usage for petrol. Card purpose mainly for emergency usage.

Petrol usage will directly impact the

monthly petrol consumption and

spending

Typical customer

Uber, GrabCar, GoGet

Sales Managers, Property Agents,

Insurance Agents, Sales and Marketing

Personnels

General Executives Low income group /

Freelancers. People that use public transportation

From research on the petrol usage, we

identify the typical clusters of customers

that reflect said usage

Annual income >= RM60,000 >= RM120,000 >= RM36,000 >= RM24,000

Annual income is included as it will be

one of the compulsory requirements of CC

application

Monthly petrol consumption 600 500 400 300

These number are under the assumption

that all petrol consumption was paid

using CC

Assumed monthly retail CC spend

RM2000 RM2500 RM1000 RM500

Monthly retail CC spending affects the

final amount of rewards of some cards

Assumed total monthly CC spend

RM2600 RM3000 RM1400 RM800

Some cards sets minimum monthly

spending for the CC owner to be eligible for

the rewards

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Monthly benefits

Which are the best cards for each segment, taking caps and T&C into account?

Profiles Name High Medium-High Medium Low

Maybank Islamic Mastercard Ikhwan Gold

Cardi) Cash rebate = RM 30.1

ii) 600 Treat Pointsi) Cash rebate = RM 251

ii) 500 Treat Pointsi) Cash rebate = RM 201

ii) 400 Treat Points Not eligible

Hong Leong WISE Gold Card RM 60 cashback2 RM 50 cashback2 Not eligible Not eligible

Standard Chartered JUST One Platinum Card RM 28 cashback3a RM 50 cashback3b RM28 cashback3c RM12 cashback 3d

HSBC Amanah Mpower Platinum Visa Credit Card-I RM 50 cashback4 RM 50 cashback4 RM 28 cashback4 Not eligible

Petronas Maybank Visa 3000 Treat Points5a OR4800 Treat Points5b

2500 Treat Points5a OR4000 Treat Points5b Not eligible Not eligible

1. Assumed monthly 10 transactions, with minimum of RM 50 each transaction2. Assumed petrol spending on Friday & Saturday3. a) assumed retail spend = RM2000. b) assumed retail spend = RM2500. c) assumed retail spend =

RM1000. d) assumed retail spend = RM5004. assumed retail spend consist of only groceries5. a) assumed spending at Petronas only on weekdays. b) assumed spending at Petronas only on

weekend

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Monthly benefits



Shell-Citi Gold Credit Card RM48 cashback on Shell fuel

RM 40 cashback on Shell fuel

RM24 cashback on Shell fuel

RM 10 cashback on Shell fuel

CIMB Petronas Mastercard RM18 cashback6a & 6b RM35 cashback6a & 6b RM12 cashback6a & 6c RM9 cashback6a & 6c


i) RM30 rebate7a / RM12 rebate7b

ii) 2000 CARz point


ii) 2500 CARz point


ii) 1000 CARz pointNot eligible

UOB One CardRM68a + RM 68c cashback

ORRM 158b + RM 68c cashback

RM68a + RM 68c cashbackOR

RM 158b + RM 68c cashback

RM68a + RM 68c cashbackOR


RM 68a + RM 68c cashbackOR


Citi Rewards Platinum Card 3800 Reward Points9 4300 Reward Points9 2700 Reward Points9 Not eligible

6. a) assumed spending at Petronas. b) 7% cashback rate as probable statement balance >RM3000 c) 3% cashback rate as probable statement balance <RM3000 7. a) Transaction paid partially. b) Transaction paid in full 8. a) assumed only spend on weekdays. b) assumed only spend on weekends c) assumed transactions only at BHP Petrol9. assumed all retail spending under home category

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Monthly benefits



RHB Smart Value Credit Card RM 30 cashback RM 30 cashback RM 14 cashback RM 8 cashback

Hong Leong Sutera Platinum

600 rewards point10a

OR1800 rewards point

500 rewards point OR

1500 rewards pointNot eligible Not eligible

Alliance Bank You:nique Card RM 18 rebate RM 15 rebate RM 6 rebate RM 1.50 rebate

OCBC Great Eastern Mastercard RM 3 rebate11 RM 2.5 rebate11 RM2 rebate11 RM3 rebate11

Alliance Bank Platinum Mastercard 1200 Timeless Bonus Point 1000 Timeless Bonus Point Not eligible Not eligible

10. a) Assumed all spend is made on weekdays. b) Assumed all spend is made on weekends

11) Assumes petrol spend is past the first Rm1,000 and 0.5% cashback is obtained, except for the ‘low’ user, which received a 1% cashback as his total monthly retail spend stays below RM 1,000

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For the heavy user of petrol – who does not necessarily has a high salary, the Hong Leong WISE Gold Card, the HSBC Amanah Mpower Platinum Visa Credit Card-I and the Shell-Citi Gold Credit Card are the most interesting cards, delivering up to RM 60, 50 and 48 per month respectively

Things are also great for the medium to high user, who does have a high salary and spends more on his credit card than the first segment. Both Hong Leong WISE Gold Card, Standard Chartered JUST One Platinum Card and HSBC Amanah Mpower Platinum Visa Credit Card-I give RM 50 per month back to these users. These cards are closely followed by the Shell-Citi Gold Credit Card, which gives back RM 40

If your salary and petrol usages drops further, the Standard Chartered JUST One Platinum Card and HSBC Amanah Mpower Platinum Visa Credit Card-I still both give RM 28 back, while the Shell-Citi Gold Credit Card gives you back RM 24. Here we would start to advise to perhaps look at cards that reward for other categories in which you spend more

If you don’t use the car that much and don’t have a high salary – benefits are minimal, typically lower than RM10 per month – that is, if you are eligible for the card to begin with. The exception is UOB’s ONE card, which can offer benefits of RM 21 if you but at BHP in weekends. For this segment of users, it makes sense to look out for other categories where they have higher spend and can perhaps benefit more.

If you are more of a points person, the Petronas Maybank Visa offers 8x points on Petrol spend in the weekends and is only challenged by the Citi Rewards Platinum Card, which gives 3,800 points for a high user (compared to 4,800 points for a high user with the Petronas Maybank Visa card.

Conclusions

Conclusions per segment

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Terms & Conditions for petrol benefits

Appendix: T&C’s

Profiles Name T&C

Maybank Islamic Mastercard Ikhwan Gold Card

- Rebates only for spending on Friday and Saturday.- Rebates capped at RM 50 per customer per month.

Hong Leong WISE Gold Card

- Minimum 10 transactions per month, with minimum of RM50 per transactions

Standard Chartered JUST One Platinum Card

- Tier 1: Minimum Retail Spend per month: RM500, Minimum Petrol Spend per month: RM 300, Current Petrol Cashback: 4%, Petrol Cap: RM12



HSBC Amanah Mpower Platinum Visa Credit Card-i

- Minimum total spending of RM 2000 per month- Cashback capped at RM 50 per month.- Participating Petrol: Shell, Caltex, Petronas

Petronas Maybank Visa

- TreatPoints gained only for spending at Petronas Service Station

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Appendix: T&C’s

Profiles Name T&C

Shell-Citi Gold Credit Card

- Rebate only for Shell fuel spending- Tier 1: Monthly total spending: RM300 – RM999, Max monthly shell fuel spending eligible for rebate:

RM250, Rebate: 4%- Tier 2: Monthly total spending: RM1000 – RM2499, Max monthly shell fuel spending eligible for rebate:

RM500, Rebate: 6%- Tier 3: Monthly total spending: Above RM2500, Max monthly shell fuel spending eligible for rebate: RM800,

Rebate: 8%

CIMB Petronas Mastercard

- Rebate only on PETRONAS spend.- Tier 1: 3% rebate with statement balance of below RM3000- Tier 2: 7% rebate with statement balance of RM 3000 and above.


- Rebates capped at RM 80 per card per month with transactions paid in partial- Rebates capped at RM 20 per card per month with transactions paid fully.

UOB One Card

- Maximum purchase amount entitled for rebates: Up to RM300 per month

Citi Rewards Platinum Card

- Rewards gained only for spending at Shell, Caltex, Esso Mobil, Petronas, BHP& Petron.- Monthly cap of RM1000.

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Appendix: T&C’s

Profiles Name T&C

RHB Smart Value Credit Card

- Tier 1: Monthly Total Spending: RM500 – RM 1500- Tier 2: Monthly Total Spending: RM1501 – RM 2500- Tier 3: Monthly Total Spending: More than RM 2501- Cashback capped at RM 15 per month

Hong Leong Sutera Platinum

- For comparison purposes, reward points only calculated for petrol consumption only

Alliance Bank You:nique Card

- Tier 1: Monthly Total Spending: RM0 – RM 1000, Rebate: 0.5%- Tier 2: Monthly Total Spending: RM1001 – RM 2000, Rebate: 1.5%- Tier 3: Monthly Total Spending: RM2001 – RM 3000, Rebate: 3%- Tier 4: Monthly Total Spending: More than RM 3000, Rebate: 0.3%- For comparison purposes, rebates only calculated for petrol consumption only

OCBC Great Eastern Mastercard

- Maximum rebate rate is only attainable with monthly spending up to RM 1000- For comparison purposes, rebates only calculated for petrol consumption only

Alliance Bank Platinum Mastercard

- For comparison purposes, reward points only calculated for petrol consumption only

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6. Recommendations

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HSBC


If you are interested to learn more, I’m always available for a discussion

Mark Reijman | Managing Director Mobile: +60 178 444 528Email: [email protected]: www.comparehero.my

Future Insights studies:

• Travel cards• Co-branded cards• Premium cards• Islamic cards

mailto:[email protected]

http://www.comparehero.my/

credit card beneficial to car owners - comparehero

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