Stratus Rewards, a division of Stratus Media Group, this summer plans to launch the Stratus Rewards Visa White Card in Europe. The card, to be issued by an undisclosed European bank, will be available through invite only and will cater to the European elite.
Santa Barbara, Calif.-based Stratus Rewards originally launched the card in the United States in 2004 with U.S. Bancorp as the issuer. They terminated the partnership about four years ago, and no new cards have been issued to U.S. consumers since that time. Representatives from U.S. Bank and Stratus Rewards were unable to provide more details on why the partnership ended.
When originally launched, the card was available through an affiliation with a Stratus Rewards partner or through a nomination by another member. Annual membership dues were $1,500 for primary cardholders and $500 for secondary cardholders.
“I’m not surprised the card didn’t take off in the U.S. The amount of people the card is geared toward is relatively small, and not everyone within that market is willing to pay for that,” Ron Shevlin, senior analyst at Boston-based Aite Group LLC, tells PaymentsSource. “It just doesn’t resonate as a useful product.”
Visa, however, disagrees. Officials there believe the affluent sector is doing well despite the economy’s gyrations, and it recently launched the Visa Signature Luxury Hotel Collection for the brand’s high-end cardholders (
Stratus Rewards believes Europe is the right place to market this type of product. “This (high-end) market is underserved, and we want to create a community that rewards Stratus’ members and partners by offering the highest level of service,” Brent Kimball, Stratus Rewards vice president, tells PaymentsSource. Stratus partners include the Marco Polo Club of Abercrombie & Kent U.S.A. LLC, Marquis Jet Partners, Vivre online shopping boutique, and Zino Platinum Cigars.
Potential White Visa cardholders include celebrities, business tycoons and old-money royalty. If accepted, they can earn points for automatic benefits such as an always-available concierge service, time on private jets and tour packages. Stratus still is finalizing the point-to-spend details, annual fees, and whether the card will be a charge card or a revolving card, Kimball says.
Despite its exclusivity and economy-based challenges, Kimball believes the card will be successful, especially in the European payments industry. Megan Bramlette, managing associate of Westbury, N.Y.-based Auriemma Consulting Group, agrees this type of rewards card could succeed in Europe.
“If you look at global cards in the last six to 12 months, most are geared to the high-end market, not the mass market,” Bramlette tells PaymentsSource. Moreover, Stratus Rewards “can make a lot of money off the super affluent because those consumers use their cards so often,” she adds, noting, too, that because Europe “isn’t a very rewards-rich market, there is a cache attached to a card that involves an invite-only aspect.”
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