Google launches its own UK credit card

The Bank of Google is open for business.

With the announcement of the “Adwords Business Credit Card”, Google has officially entered the credit industry.

After a successful year-long pilot scheme in the United States, Google has teamed up with Barclays to issue MasterCard credit cards usable exclusively on purchases of Adwords – the small adverts that appear on the site’s search engine.

The initiative is primarily intended to help its customers finance these purchases through offering credit ranging from $200 (aprx £125) to $100,000 (aprx £62,000) a month at a highly competitive rate of 11.9 per cent. The exact terms can be found here.

The pilot scheme revealed that the service led to significant growth in advertising purchases, with 74 per cent of respondents using the Adwords card. Google expects that the full deployment of its credit scheme will produce a multiplier effect that will encourage customers to allocate an increasing share of their marketing budget to Google Adwords.

Google treasurer Brent Callinicos revealed as much in an interview the FT, declaring that Google was “not trying to run the financing business as a profit centre”, solely as a lubricant to stimulate advertising investment.

Google began inviting small and medium sized business to join the program from Sunday.

In partnership with Comenity Capital Bank, a similar credit card will be released in the United States in the upcoming weeks with an 8.99 per cent rate of interest.

This isn’t the first time a technology giant has made a foray into financial services: Apple offers financing through its own Visa, whilst Amazon launched its own credit initiative last week to independent sellers wanting to list products at the Amazon Marketplace.

Photo: AFP/Getty

Alex Ward is a London-based freelance journalist who has previously worked for the Times & the Press Association. Twitter: @alexward3000

Photo: Getty
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Shock Wales YouGov poll shows that Labour's Ukip nightmare is coming true

The fear that voting Ukip would prove a gateway drug for Labour voters appears to be being borne out. 

An astonishing new poll for the Cardiff University Governance Centre and ITV Cymru shows a historic result: the Conservatives ending a 167-year wait for an election victory in Wales.

The numbers that matter:

Conservatives: 40 per cent

Labour: 30 per cent

Plaid Cymru: 13 per cent

Liberal Democrats: 8 per cent

Ukip: 6 per cent

Others: 3 per cent

And for context, here’s what happened in 2015:

Labour 36.9 per cent

Conservatives 27.2 per cent

Ukip 13.6 per cent

Plaid Cymru 12.1 per cent

Liberal Democrat 6.5 per cent

Others 2.6 per cent

There’s a lot to note here. If repeated at a general election, this would mean Labour losing an election in Wales for the first time since the First World War. In addition to losing the popular vote, they would shed ten seats to the Tories.

We're talking about a far more significant reverse than merely losing the next election. 

I don’t want to detract from how bad the Labour performance is in a vacuum – they have lost 6.9 per cent of their vote on 2015, in any case the worst election performance for Labour in Wales since the rout of 1983.  But the really terrifying thing for Labour is not what is happening to their own vote, though that is pretty terrifying.

It’s what’s happened to the Conservative vote – growing in almost every direction. There is some direct Labour to Tory slippage. But the big problem is the longtime fear of Labour MPs – that voting for Ukip would be a gateway drug to voting for the mainstream right – appears to be being realised. Don't forget that most of the Ukip vote in Wales is drawn from people who voted Labour in 2010. (The unnoticed shift of the 2010-5 parliament in a lot of places was a big chunk of the Labour 2010 vote went to Ukip, but was replaced by a chunk of the 2010 Liberal Democrat vote.) 

If repeated across the United Kingdom, the Tory landslide will be larger than the 114 majority suggested by the polls and a simple national swing.

As I’ve said before, polls are useful, but they are not the be-all and end-all. The bad news is that this very much supports the pattern at elections since the referendum – Labour falling back, the Tories losing some votes to the Liberal Democrats but more than making up the loss thanks to the collapse of Ukip.

The word from Welsh Labour is that these figures “look about right” at least as far as the drop in the Labour vote, though of course they have no idea what is going on with their opponents’ vote share. As for the Conservatives, their early experiences on the doorstep do show the Ukip vote collapsing to their benefit.

One Labour MP said to me a few days again that they knew their vote was holding up – what they didn’t know was what was happening to their opponents. That’s particularly significant if you have a “safe seat” but less than 50 per cent of the vote.

Wales has local elections throughout the country on 4 May. They should provide an early sign whether these world-shaking figures are really true. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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