Barclaycard Meets Social Networking

I guess it is an age thing, but I was surprised to see a Barclaycard running on the MasterCard network. In my day Barclaycard seemed to become Visa and Access became MasterCard (I do know that it wasn’t quite like that!).

Anyway, park my misconceptions and this is actually an interesting story: Barclaycard US have launched Barclaycard Ring, a social network credit card/social credit card. Driven by the influence of an online community of card members, the new card will offer a low (8%) interest rate, low fees, simple terms and the opportunity for card members to shape and share in the product’s financial success.

For the first time, through a virtual card member community, Barclaycard Ring card members will have visibility into the card’s financial profit and loss statements. An online framework will provide card members with the ability to influence decisions that impact how the card is managed and serviced and a unique Giveback(TM) program will enable the community to share in the profit generated from its collective decisions.

Using social media, the community will also provide a forum where card members can exchange ideas, share knowledge and provide direct feedback to Barclaycard US to help determine future features of the product.

“Through simple and transparent terms, we want to pull back the curtain that has traditionally separated banks from their customers and give our community a say in weighing economic tradeoffs that can create a better card member experience,” said Paul Wilmore, Managing Director-Consumer Markets, Barclaycard US. Wilmore went on to say, “Some might say we’re creating a virtual credit union or community bank, but we’re taking that model much further by giving our members a seat at the table to help decide what card features and benefits are really best for them.”

Barclaycard Ring is currently in alpha testing and will be available to consumers later this spring.

Update November 2024

The Barclaycard Ring Mastercard, initially launched as an innovative “social credit card” by Barclaycard US, has undergone significant changes since its introduction and is no longer available as it was originally conceived.

Evolution and Decline of the Barclaycard Ring

When first introduced, the Barclaycard Ring Mastercard was marketed as a unique, community-driven credit card with several distinctive features:

1. Social Media Integration: It was designed to be shaped by a community of cardholders through social media interaction[1][4].
2. Transparent Terms: The card offered simple, easy-to-understand terms and benefits[5].
3. Low Interest Rate: Initially, it featured a low 8% interest rate for all balances[5].
4. Profit Sharing: Cardmembers had the opportunity to shape and share in the product’s financial success[1].

Changes and Current Status

Over time, the Barclaycard Ring underwent several modifications that deviated from its original concept:

1. Discontinued Features: The social media aspect and community involvement gradually diminished. The monthly news emails and community website became less maintained and eventually stopped[2].
2. Removal of Benefits: Key features like free balance transfers and direct deposits to checking accounts were eliminated[2].
3. Interest Rate Increases: The initially low APR increased several times, making it less competitive compared to other low-interest cards[2].
4. Limited Availability: Barclays eventually stopped accepting new applications for the Ring card[2].
5. Shift in Barclays’ Strategy: Barclays has largely abandoned issuing its own cards, focusing instead on co-branded cards, similar to issuers like Comenity or Synchrony[2].

Current Situation for Existing Cardholders

For those who still hold the Barclaycard Ring:

1. Risk of Closure: Due to Barclays’ changing strategy, there’s a risk of account closure for inactivity. Some cardholders have reported receiving warning letters to use the card or face closure[2].
2. Reduced Utility: With the removal of many original benefits and the lack of rewards, the card has lost much of its appeal for many users[2].
3. Varied Experiences: Some long-time cardholders still report satisfaction with the card, particularly those who maintain the original low APR, while others find it less useful[2].

In summary, the Barclaycard Ring, which started as an innovative social credit card concept, has essentially been phased out. While some existing cardholders still have active accounts, the product no longer accepts new applications and has lost many of the unique features that initially set it apart in the credit card market.

Sources

[1] Barclaycard Introduces First Crowdsourced Social Media Credit Card https://thefinancialbrand.com/news/payments-trends/credit-card-trends/barclays-social-media-credit-card-community-23680/
[2] What happen to Barclay’s ring mastercard? – myFICO® Forums https://ficoforums.myfico.com/t5/Credit-Cards/What-happen-to-Barclay-s-ring-mastercard/td-p/6091730
[3] Barclay Ring Master Card Changes – myFICO® Forums – 6015279 https://ficoforums.myfico.com/t5/Credit-Cards/Barclay-Ring-Master-Card-Changes/td-p/6015279
[4] Barclaycard launches social media-driven credit card https://www.loyaltymagazine.com/barclaycard-launches-social-media-driven-credit-card/
[5] Barclaycard US opens up ‘social’ credit card – Finextra Research https://www.finextra.com/pressarticle/44086/barclaycard-us-opens-up-social-credit-card

Kevin Harrington Partner

Kevin Harrington is a Partner at Exit Factor UK, helping SME owners increase business value & build a rewarding, well-planned exit. Former CMO at BBC Worldwide.

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