GE Issues Cards In Canada, Plans More Expansion

<I>Salt Lake City</I> - GE Capital Services last month began issuing corporate cards in Canada, and domestically issued the first MasterCard fleet cards for Bell Atlantic, which has one of the nation's largest corporate fleets with more than 18,000 vehicles.

Not surprisingly, the first customer for the new Canadian GE Capital MasterCard is GE itself--similar to the company's U.S. program, where more than 80,000 GE employees have received the cards. GE began distributing cards to a "sizable" number of Canadian employees last month, GE said. Negotiations are under way with both U.S. and Canadian firms for further Canadian issuance of travel, purchasing and the new fleet cards, according to Mitch Gross, vice president of marketing for GE Capital's Corporate Expense Management Services.

Canada becomes the fourth country where GE Capital issues corporate cards by wholly owned affiliates, after the United States, United Kingdom and the Republic of Ireland. "In the near term, we'll expand further into Europe," Gross said.

Although MasterCard bylaws have allowed member banks to issue cards across borders, Visa only recently revised its rules to allow the practice. However, bank card issuers have been slow to issue cards in multiple countries because they must establish a local banking presence by either buying or aligning with a local bank, and develop the infrastructure to sell and service the product.

Still, some bank card issuers are aggressively pursuing global expansion as they try to invade the market that American Express and Citicorp Diners Club have long owned. First Bank Corporate Payment Systems began offering cards in Canada a few years ago through an alliance with Royal Bank of Canada. And new card player Carlson Wagonlit Travel, in partnership with Household, expects to issue its first Canadian cards this month.

GE Capital spent a considerable amount of time developing a product that would meet the Canadian market's needs. Although the card is essentially the same as in the United States, the insurance coverage and language offerings are different. Billing and telephone support is offered in both English and French Canadian.

Meanwhile, GE executives have been working with MasterCard for more than two years on development of the fleet card. GE and Dallas-based First USA Paymentech, in partnership with PHH, both announced plans to launch fleet cards in November. In March, GE Capital began distributing the first cards to Bell Atlantic employees, while First USA/PHH expects to debut its fleet offering this month.

Like First USA, GE Capital is discussing combining functionality of its T&E, purchasing and fleet cards on one piece of plastic.