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Visa Pushes for Higher Stake in 'New Affluent' Market
SAN FRANCISCO -- Visa has launched a national advertising campaign targeting high-end consumers known as the "new affluent" segment.The segment is defined as individuals 35 to 54 with household incomes of $125,000 and higher who typically are employed as professionals and managers and lead busy, active lives. While this segment comprises only 7% of all U.S. households today, it accounts for 15% of U.S. spending. On average, these affluent cardholders spend 2.5 times more each month on their credit cards than average cardholders."We're now at the point where many of our credit-card issuers are reaching critical mass with their signature portfolios, and they are looking for Visa to help them continue to compete in this affluent segment," says Carl Pascarella, president and chief executive officer, Visa USA. "With Visa Signature, our members' can offer their customers a better financial tool with greater benefits and more relevant rewards."Visa's Signature card now accounts for $80 billion in sales volume annually, which industry reports confirm is more than American Express Gold and Platinum consumer cards combined, Pascarella notes."These consumers have broken the mold on how we define wealth and affluence in America," says Elizabeth Buse, executive vice president, product development and management for Visa. "They are less concerned about appearances and traditional outward notions of prestige, and instead care more about how they can live better and achieve more."The new affluent segment represents an enormous opportunity for Visa's member financial institutions in transaction volume, growth and coveted long-term customer loyalty that fuels growth in other financial service offerings. According to census and Federal Reserve studies, the segment represents more than $3 trillion in annual household income and more than $6 trillion in net worth."Visa has created a competitive edge for its members by understanding the upscale segment and building card, rewards and benefit offerings that are an ideal fit for the way they live," Buse points out. "Through Visa Signature, Visa has structured a powerful combination of rewards and perks that appeal specifically to the new affluent consumer, helping them do and enjoy more."Among the rewards and benefits it plans to highlight in its marketing push are:Dining Privileges. Signature cardholders have access to reservations for hard-to-reserve tables at popular and new restaurants. Special tables are reserved for Visa customers.Hotel Upgrades. At available hotels and resorts, cardholders will have their rooms upgraded, when rooms are available.Concierge Services. Through this round-the-clock service, cardholders have access to a team of expert personal assistants who can help with travel reservations, entertainment plans, meeting arrangements, shopping and special requests.No Pre-Set Spending Limit. This feature offers consumers remarkable purchasing power and payment flexibility. Consumers should see visa.com for additional information.Benefits already part of the services Visa offers its upscale cardholders include premium travel insurance coverage, roadside emergency dispatch, lost luggage reimbursement and access to a full range of special offers, upgrades and discounts.Nearly 21,000 financial institutions worldwide rely on Visa's processing system, VisaNet, to facilitate $2.5 trillion in annual transaction volume. Consumers in more than 150 countries carry more than one billion Visa-branded cards, accepted at millions of locations worldwide. Within the United States, nearly 14,000 financial institutions issue 429 million Visa cards, accounting for more than $1.1 trillion in annual transaction volume."