July 22, 2011 |
Google is going into the credit card business, improving its margins on advertising by moving down the food chain. The catch is 1) the business MasterCard issued by World Financial Capital Bank is only available to selected customers of Google’s advertising service and 2) can only be used to buy advertising through the AdWords unit. Initially, interest will be set at 8.99% with no annual fee. The card is Google’s first (but unlikely its last) venture into vendor financing. While more typically offered for capital expenditures, service spend can be expanded with judicious credit use and Google is the king of search ad spend. Watch this one closely.