Tandem launches second, more expensive credit card

The new card will target people with limited credit histories.

Tandem Bank has launched its second credit card, which has been dubbed the Journey Card. It is aimed at underserved customers with limited to no credit histories.

Tandem is pitching the Journey Card as a means of building up a strong credit profile from a low base, which is all well and good so long as customers pay on time without going over their credit limits.

The card carries a representative APR of 24.9 per cent, a step up from Tandem’s first Cashback Card which charged borrowers 18.9 per cent – a rate Tandem acknowledged was not the cheapest option on the market. Users of the new card will have 56 days interest free on any money spent.

The Journey card has been optimised for travel. Users making overseas purchases will not be charged any additional fees, and will receive real-time notifications via the Tandem app.

Other key features include zero transaction fees on cash withdrawals, in-app budgeting tools, and – in true digital banking fashion – a ‘stylish and colour-personalised card aesthetic’.

Ricky Knox (pictured), CEO of Tandem, said: “The team at Tandem have been working tirelessly to deliver a multitude of credit, savings and tech products to our customers. With the Journey Card people can continue their spending abroad while benefiting from zero fees. The integration of credit products into our app is a game-changer for the industry. Our competitors have launched some great pre-loaded and debit cards, but we will own credit in this space.”

Tandem became a fully authorised bank earlier this year, following the acquisition of Harrods Bank. Its core offering it to aggregate all of a user’s bank accounts, giving them full visibility over their finances. Since getting its licence, the firm has unveiled a number of fixed savings accounts in addition to its credit cards.

How to balance the ethos of customer centricity with money-making products like loans and credit cards is a central debate for the nascent digital banking industry. But Knox has always been clear that digital banks must make money the old-fashioned way: by taking deposits and lending money.