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Founded in 1922, Canadian Tire Corporation, Limited is a growing network of interrelated businesses, engaged in retail, financial services and petroleum. Its partnership with Mint currently includes two programs to cater to CTFS’s cross multiple consumer markets, the Prepaid Decline Card and the Companion Card. The “Credit Builder Card” is targeted at Canadian Tire Financial Services customers that are not eligible for credit. The cost of rejected credit applications can cost a credit issuer between $100 - $200 per application and decline rates can be as high as 60%, as well credit issuers are unable to offer credit to youth under the age of 18. Mint’s product solution provides an alternative these applicants being declined outright; consumers are offered a personalized Canadian Tire branded prepaid MasterCard®. Mint’s “Credit Builder” function collects these customers’ spending data and makes this available to Canadian Tire Financial Services to possibly migrate some of these customers back to a traditional credit card in 6 – 9 months time. The product is available to purchase at http://www.ctprepaid.com/.
Canadian Tire Financial Services serves multiple markets and as such requires an alternative payment product to credit for its youth market as well. The “Companion Card” is marketed to all Canadian Tire Financial Services credit card customers in good standing. Canadian Tire will be mailing prepaid companion cards to those customers for use by their immediate family members. Especially useful for youth, it teaches responsible spending and budgeting behaviors early on. For college age youth away from home, it can be used by parents who can re-load the prepaid cards with cash online, from their mobile phones, linked to their credit cards, and at a bank, again teaching youth the responsibility of managing their spending to a budget. Both prepaid cards are accepted at any merchant in the world that accepts MasterCard® electronically, including internet payments and ATM cash withdrawals. |
