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 Benesse Corporation will launch a new credit card business that will see the Company begin issuing its own Benesse Credit Cards with partners from March 10 (Thu.), 2005.

Based on the concept of offering support for educational development, Benesse Credit Cards are backed by a group of partners from a wide range of business fields. In various education-related situations, including those encountered in childcare and everyday life, cardholders will be able to receive privileges and services from Benesse, as well as information on childrearing and education. Users will also gain access to privileges and services offered by card partners.

Looking ahead, Benesse plans to sign up more card partners in line with customer needs to further enhance the appeal of its credit cards.

As with Benesse Study Loans, launched in February 2005, Benesse Credit Cards are designed to expand Benesse’s menu of support services in the education field.




-Product Name
Benesse Credit Cards
-Membership/Annual Fees
Zero (indefinitely)
-Intended Users
In principle, individuals 18 years or over that can demonstrate that they or their spouse have a stable income; students in tertiary education.
-Partners
JCB Co., Ltd.
(Head Office: Minato-ku, Tokyo; President, Hiroya Nobuhara)
UFJ Card Co., Ltd.
(Head Office: Chiyoda-ku, Tokyo; President, Mitsutaka Ando)




(1)Card Specifications
-A choice of three international credit card brands: JCB, VISA or MasterCard
-A choice of two card designs
-Embedded with FeliCa contactless IC technology; easy web access and usability

(2)Card Services Provided by Benesse
-Cards can be used for purchases of Kodomo Challenge-related products and services.
*From fall 2005, Benesse plans to gradually introduce the same service for Shinkenzemi Elementary Courses and then other products for older age groups.
-Cardholders earn points depending on how much they spend. These points can be redeemed when purchasing other products.
*Saved points remain valid indefinitely provided the card is in use.
-Cardholders receive useful information on childrearing and education from The Benesse Educational Research Center in the form of a newsletter; at a later date, this content will be edited and provided by topic via the web.
-Children enrolled in Kodomo Challenge or Shinkenzemi courses benefit from an Omimai System (condolence support) in the event of the cardholding parent’s death (condolence payment and free course materials for 6 months).

(3)Educational and Life Services Provided by Card Partners
-Higher reward point benefits from specific partners and stores offering childrearing and educational products and services, regardless of the amount spent on the credit card. Special discounts also offered on some products.
-Free advice and counseling on childrearing, as well as special discounts on medical and dental checkups and other services.
-Special discounts on babysitting and short-term childcare services.
-Special discounts at more than 20,000 hotel and leisure facilities nationwide.




Benesse has decided to begin issuing its own credit cards for two main reasons:

(1)To enhance marketing in existing businesses
Benesse can strengthen its cross-selling capabilities by identifying individual customer needs from purchasing trends. Using data gleaned from sources other than Kodomo Challenge and Shinkenzemi, such as the type of educational information requested by cardholders or the kind of partner products and services purchased, Benesse aims to boost the ratio of existing customers buying additional Benesse products. Further, Benesse will use the cards to develop its CRM (Customer Relationship Management & Continuous Relationship Management) strategy by tapping into customer lifestyles. Examples include encouraging university students to choose the Benesse Credit Card as their first card, and, using FeliCa technology, distributing membership cards to elementary and junior high school students that contain e-money.

(2)To reinforce brand loyalty
According to a market survey carried out by Benesse, there is demand from parents raising children for a reassuring means of receiving reliable information on childrearing and education, and for purchasing related products and services. Benesse Credit Cardholders will get more than just a convenient means of paying for purchases; other benefits will include points for purchases made with Benesse and its card partners, and education-related services such as unique information on childrearing and education. In this way, Benesse aims to reinforce brand loyalty and capitalize on synergies with existing businesses.