Chase's Thai Plan Revives Its Foreign Card Interest

Chase Manhattan Corp. is showing a renewed interest in the international bank card market.

Last week the New York-based banking company said it plans to launch a credit card in Thailand, which is in the midst of a recession.

"We continue to see long-term opportunities in the Thai market," said Doug Asper, Chase's senior country officer in Thailand. "By laying the groundwork now in a gradual and cautious manner, Chase will be well- positioned for Thailand's eventual economic recovery."

Chase used to issue cards in the United Kingdom, Spain, Argentina, Brazil, Chile, Puerto Rico, Singapore, and Taiwan. It pulled out of those markets between 1990 and 1993 when it could no longer afford to support the programs.

Today, Chase issues credit cards in the Virgin Islands, Panama, and Hong Kong. It recently paid $250 million for whole ownership of the Hong Kong- based Manhattan Card Co., of which it already owned 54%.

Chase is also said to be pursuing a cobranded card in Thailand with Shell Oil Co., with which it has been marketing a MasterCard in the United States for five years.

Chase denied that it plans to export the program, but a source familiar with the discussions said the companies are likely to introduce a cobranded card in Asia once the economies there stabilize. The source said Chase is keenly interested in expanding its relationship with Shell internationally.

Chase's initial card launch in Thailand will be small, but the bank plans to add marketing, and perhaps other consumer financial products, in 1999.

"It would make a lot of sense" for Chase to bring its partnership with Shell to other countries, said Thomas K. Brown, an analyst at Donaldson, Lufkin & Jenrette. "From Chase's perspective, the Shell card has been a great success."

Shell has an international card base through its private-label business. Extending its relationship with Shell would spare Chase from starting at ground zero in countries where it lacks a retail presence.

Shell has three cobranded card programs outside the United States: in Canada with Bank of Montreal, in Australia with GE Capital, and in the Philippines with Citibank.

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