Only a few people have won $1 million on the television show "Who Wants to be a Millionaire," but that has not stopped MBNA Corp. from marketing a new credit card for people with that much wealth.
The Quantum card offers credit lines of up to $1 million and perquisites like financial consulting and concierge services. Last month the Wilmington, Del., company began inviting high-net-worth consumers to apply online for the card, which comes with a personalized Web site where cardholders can view all their MBNA accounts.
Unlike other exclusive card products, Quantum does not charge an annual fee, but cardholders who pay $75 get one million points per year to use toward free airline and train tickets, hotel stays, resort discounts, and other travel programs.
"What we do very well is market to prime and superprime customers, and we think there are still lots of opportunities remaining," said Michelle Shepherd, vice chairwoman and head of advertising at MBNA, who has been leading the Quantum project.
Quantum's competitive advantage over American Express Co.'s stronghold in this market, she said, is the absence of an annual fee. American Express' Centurion card costs nearly $1,000, and its more established Platinum card charges a $300 fee.
Some rich people are not willing to pay an annual fee, Ms. Shepherd said. "These people expect to get something for nothing. They're valuable customers, and they know it. We agree, and we can still make a very nice profit from them without having to charge them a fee."
So far the company is "very pleased" with Quantum's performance, Ms. Shepherd said, but she declined to disclose its numbers.
David Gagie, marketing director of Auriemma Consulting Group Inc. of Westbury, N.Y., said MBNA is "targeting people who want a higher scale of service but don't necessarily want to pay more for it. That's a pretty big audience."
Previous efforts to reach this market segment have not fared well. MasterCard's World product and Visa's Signature card offer perks similar to Quantum's, such as concierge service and travel discounts, but have struggled in the past two years to win over the wealthy.
"They're not going to take a lot of business away from Amex," Mr. Gagie said, "but I'm loath ever to say that MBNA will fail to penetrate a market. MBNA has obviously thought this one out, and it's a great looking card."
The frosty-looking, translucent Quantum card looks more like an accessory than a credit card. "We really wanted something that would stand out in the wallet," Ms. Shepherd said.
