Johannesburg - "Virgin Money cardholders saved in excess of R30m by not being ripped off with annual credit card and loyalty fees," the group claimed on Tuesday.
In celebrating its first birthday, Virgin Money SA announced that it has approved over 180 000 cards in the last year, making its credit card one of the fastest-growing in the country.
"Our entry into the SA credit card market has given the established banks a well-deserved wake-up call, bringing about real competition and a permanent shift towards lower pricing for consumers," said the Virgin Group chairperson, Sir Richard Branson.
The Virgin Money credit card was launched in late June 2006, and is the only credit card in South Africa to combine no annual fees, no loyalty fees, and an interest rate of 0% for the first three months for any swiped purchases.
"Virgin Money launched in South Africa to do one thing - shake up the financial services industry and offer customers a better deal," said Branson. "We reviewed the industry and asked ourselves: What could be improved? In the case of the SA credit card market, that was a pretty easy question to answer."
John Maxwell, managing director of Virgin Money said that since the card's launch, at least six new entrants "jumped on the bandwagon and introduced their own particular branded credit cards into the market".
R1.5bn easy profits for the banks
"While I'm certainly not complaining, it's crazy that none of these new entrants, or indeed any of the more established credit card providers, has gotten rid of its annual credit card fee altogether."
"There are still an estimated six million South Africans paying an average of R250 a year in annual card and loyalty fees - a total of R1.5bn in easy profits for the banks - just for the privilege of carrying around their particular bank's brand of credit card," he added.
Maxwell said that Virgin Money had noted considerable consumer and industry responses towards the company's entry into the credit card market.