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This paper aims to develop a set of tactical electronic business solutions for the electronic credit card issuing industry.

Specifically, a strategic credit card issuing (SCCI) model is developed to analyze e-business in the credit card issuing industry. Second, a set of tactical solutions is derived on the basis of the SCCI model. Third, pattern analysis is conducted on the basis of data collected from dominant credit card issuing companies to further investigate the implementation status on these electronic business solutions in the credit card issuing industry.

The findings show that three categories of electronic business solution items can be classified. The average variability of electronic business implementation patterns for business-to-business, business-to-customer and business-to-internal in each company shows a variety of electronic business strategies implemented by these dominant companies.

The results will help managers and executives when they make strategic and tactical decisions on electronic business in the credit card issuing industry.

This paper explores factors affecting spending behavior of credit card holders in Malaysia. Specifically, variables such as demographic factors, banks’ policies, and credit card holders’ attitudes toward money are examined.

A cross‐sectional survey through the use of a structured questionnaire was administered on 150 credit card holders based on the area sampling and convenience snowball sampling techniques.

The results indicate that age, income, and marital status have significant correlation with credit card holders’ spending behavior. The same goes to two of the three items identified under banks’ policies (benefits given and payment policies) and attitudes toward money (willingness to pay and awareness of the total debt owed). Occupation, qualifications to apply for credit card, and management of income vs expenses are not significantly related to credit card spending behavior among Malaysians.

The study serves as a guide for researchers to extend the research work covering more variables in different economies in light of the low R² value. The small sample size raises the issue of generalizability, which future studies should address.

The results could be used as a guide by emerging market economies or even developed countries where credit card usage is a widespread phenomenon. It also provides insights to the credit card issuing banks in terms of understanding their target consumers, preferences, and the effect of their policies on credit card application and use.

This study sheds light on credit card spending behavior, particularly among Malaysians.

During the 1970s we became thoroughly accustomed to the use of “plastic money”; the volume of UK based credit card transactions rose from 10m in 1971 to over 100m by 1979. Today there are over 13m credit cards in circulation, and this excludes other cards issued by department stores and multiples. But this proliferation of plastic creates its own problems. Control needs to be exercised over excessive spending by card‐holders; the unit costs of processing card‐based transactions needs to be contained; and of course the possibility of fraudulent use must be safeguarded against. The transaction telephone is one way in which these problems can be tackled. Already commonplace in the US, they are now being used by some major department store groups in the UK. The first part of this article reviews the range of technological issues which have so far determined the way credit card automation has developed. It also discusses how other technological factors may influence the different kinds of service delivery packages for retailers and ultimately card holders. The second part, to be published in our next issue, will discuss aspects of market strategy development for both the larger and smaller card issuing organisations.

The credit card business has been one of the key businesses for banks in Taiwan. The purpose of this paper is to use competitive dynamics and structured context analysis (SCA) to explore the competition relationships among market, resources, and strategies concerning the credit card issued banks in Taiwan.

The market commonality and resource similarity analysis of competitive dynamics in the first stage obtained the competitive mapping of four major credit card issue banks, as well as the differences of competition strategy. In the second stage, 1,968 pieces of data on credit card news from 2013 to 2014 were collected. SCA was used to analyze the competitive action, competitive response, number of responses, response lag, and response order.

The competitor mapping and four hypothesis obtained from competitive dynamics correspond to the credit card competition strategy, as obtained from SCA.

This research combined competitive dynamics and SCA to analyze the credit cards market in Taiwan. The research model could be used in the other financial market.

Compares the affinity credit card markets in the USA and the UK, focusing on the members of the partnership trio: charities, card issuers and cardholders. The affinity card market in both the USA and the UK is expanding rapidly. Explores the motivations for entering the partnerships and the satisfaction derived from the partnerships. Discusses the results in the light of an increasing deregulated marketing environment permitting foreign credit card issuers entry into the UK market.

This study aims to examine the validity of the installment payment contract when using the first Islamic credit card (ICC) in Jordan and will explore the hidden techniques that are used to operate such a financial product. The purpose of the study will be achieved by examining the structure and the issues surrounding the first ICC that was introduced to the Jordanian market as a hybrid contract of Qard Hassan (benevolent loan), Murabaha, Wakalah (agency) and Bay‘ Al Ajjal (credit sale). In addition, a further objective is to examine whether this credit card is a Sharia-compliant financial product.

A qualitative research method approach was adopted to understand the issues, nature and structure of the first Jordanian ICC. This was due to the explanatory nature of the product, the different financial solutions it offered and the fact that the ICC in Jordan is, to date, relatively unexplored. This paper used the technique of content/thematic analysis that involves multiple sequenced steps to analyze these matters.

The main finding of this research is that the first ICC in the Jordanian financial market has caused a degree of uncertainty. This is because, once a customer decides to choose the installment payment contract option, the bank does not have real possession of the assets in question. The issue of constructive possession has been denied by several classic and contemporary Islamic scholars, including the General Iftaa Department of Jordan. Therefore, it can be seen that the installment payment contract option does not comply with Islamic principles and particular Fatwas that have been decreed.

This is the first study that shows how the first ICC, being a new Islamic financial product in Jordan, operates in relation to the installment payment contract. In addition, focusing on the concept of changing the nature of the contract from a Qard Hassan (benevolent loan) to a hybrid contract is significant, to encourage Islamic scholars to take a clear, legal stand under Sharia law.

Purpose – This paper focuses on a unique historical case study of industry evolution in order to develop a road map where historical and strategic research could develop a common ground for trans-disciplinary inquiry.

Design/methodology/approach – The industry I explore is the Universal Credit Card Industry since its inception with the Diners Club in 1949 until its maturity in late 1990s. My empirical objective here is to develop a historically detailed and theoretically rich case study in which evolutionary processes are discovered as a result of the historical narrative.

Findings – The historical account of the industry demonstrates how the evolution of alternative business models as organizing forms has led to the establishment of interorganizational platforms with unique ecosystems. These alternative business models, through various experimentations, have ultimately produced two critical interorganizational organizations, one based on an open-loop system represented by Visa and MasterCard, and the other based on a closed-loop system represented by Diners Club and the American Express. The historical account also shows that in a given industry competition is not only among specific firms in the industry but also among the business models and the platforms created by these models.

Originality/value – I conclude that historical analyses reveal the nature of competition not only among firms but also among alternative business models where traditional strategy research rarely covers.

Japan has a large number of credit cards on issue and many of these are issued by Japanese retailers. Two such retailers, Saison and Daiei, illustrate why and by what means Japanese retailers have entered the credit card market. This provides the backdrop to an explanation of how those major retail groups are now seeking to redefine the payment system supply chain to their own advantage. Makes reference to the worldwide competition between Visa and Master Card and how in Japan retailers have been able to play one card association off against the others. Also highlights the value of the information flows from the cardholder to the retailer and vice versa and draws attention to the potential of the retailer credit card in customer retention, recruitment and relationship building.

Examines the history and economics of the credit card before describing the origins of the affinity card concept both in the USA and the UK. Explores different strategies of some major UK affinity card issuers and the aspirations of the affinity groups with whom a mutually beneficial relationship is sought. Successful affinity cards occur where the expectations of the card issuer are met by the aspirations of the affinity group and examples are used to illustrate a good and bad “fit”. Considers the current pressures on affinity cards and offers some thoughts on the need for a mutual understanding of the aspirations of both issuer and affinity group.

The article is based on both secondary and primary research into the use of plastic payment cards in China. The secondary research offers an understanding of the history and current situation of payment cards in China, whilst the primary research provides insights into the uniqueness of the Chinese market from the perspective of card holders, card issuers and merchant acceptors. As barriers to entry into China remain high for foreign banks, particularly if they wish to pursue a branch centric approach to distribution, the article also draws attention to the advantages of a card centric approach to market entry. Other Asia‐Pacific markets such as Australia, Hong Kong, Korea and Japan have already embraced the plastic card as a means of payment at the point‐of‐sale. As a market, China has more potential than any other country in Asia‐Pacific, but more knowledge is required concerning the evolution to date of payment cards in China and the impediments that foreign entrants will face.