LivingSocial to Offer Its Own Credit Card

LivingSocial to Offer Credit CardFile this news under ‘interesting’ rather than ‘hot’: LivingSocial, the #2 daily deals site behind Groupon, announced yesterday it was planning to launch a credit card in the coming months in an effort to inspire more customer loyalty.

The card will be a Visa with no annual fee and issued by Chase. Cardholders who make 10 purchases in a month with the card will earn 10 Deal Bucks. Deal Bucks can be used to pay for LivingSocial daily deals and other offers.

In theory, this could be a decent deal if you are able to put your smaller purchases onto the card and are at least an occasional LivingSocial customer.

In addition to attracting repeat business, LivingSocial has some other very good reasons for introducing its own credit card. According to recent research, the typical LivingSocial/Groupon shopper represents an attractive demographic. Compared to the average U.S. credit card holder, they are more affluent, have higher credit scores and make three times as many credit card purchases. In addition, they are very receptive to the idea of a co-branded card, with 27% indicating they would be interested in a LivingSocial credit card.

While it’s expected that the card will be out in a few months, no specific date for the card’s availability has yet been announced.

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