Rogers to offer credit cards

daniel j Hanniman Pictures, Images and Photos Rogers Communications has announced that they are applying to become a bank. The company is looking for ways to grow and since they are already big in the telecom, TV service and sports (Toronto Blue Jays) industries in Canada, they must branch out into new industries to find growth. The Rogers strategy for success has always been to enter heavily regulated industries with large barriers for entry, preferably with an inherent advantage over everyone else.

They entered the telecom industry because millions of people used Rogers’ cable TV service. Buying the Blue Jays gave them the only Major League Baseball team in Canada. Starting a credit card offering will essentially hold their customers by the balls. If you don’t pay your Master Card or your Sears card then your credit will suffer. Although that is a bad thing that could hurt your way of life, it ends there. However, if you don’t pay your future Rogers credit card, then good luck talking on the phone, watching TV or using the internet.

For Rogers, this is a great move. Many people pay their Rogers bills with a credit card anyway. By using their new Rogers credit card, they may get some small discount and Rogers will make a lot of money on the interest on those credit cards. It also allows them to be more entrenched with their customers and remove other companies from their transactions. They also plan to offer mobile payment services. This is something that is too vague to discuss in detail but, they obviously can utilize their wireless andĀ land-lineĀ assets to make more money than other mobile payment services.

When Rogers decides to enter an industry they are usually very successful. I expect this success to continue and grow as they offer certain financial services.