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

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Tom Watson rouses Labour's conference as he comes out fighting

The party's deputy leader exhilarated delegates with his paean to the Blair and Brown years. 

Tom Watson is down but not out. After Jeremy Corbyn's second landslide victory, and weeks of threats against his position, Labour's deputy leader could have played it safe. Instead, he came out fighting. 

With Corbyn seated directly behind him, he declared: "I don't know why we've been focusing on what was wrong with the Blair and Brown governments for the last six years. But trashing our record is not the way to enhance our brand. We won't win elections like that! And we need to win elections!" As Watson won a standing ovation from the hall and the platform, the Labour leader remained motionless. When a heckler interjected, Watson riposted: "Jeremy, I don't think she got the unity memo." Labour delegates, many of whom hail from the pre-Corbyn era, lapped it up.

Though he warned against another challenge to the leader ("we can't afford to keep doing this"), he offered a starkly different account of the party's past and its future. He reaffirmed Labour's commitment to Nato ("a socialist construct"), with Corbyn left isolated as the platform applauded. The only reference to the leader came when Watson recalled his recent PMQs victory over grammar schools. There were dissenting voices (Watson was heckled as he praised Sadiq Khan for winning an election: "Just like Jeremy Corbyn!"). But one would never have guessed that this was the party which had just re-elected Corbyn. 

There was much more to Watson's speech than this: a fine comic riff on "Saturday's result" (Ed Balls on Strictly), a spirited attack on Theresa May's "ducking and diving; humming and hahing" and a cerebral account of the automation revolution. But it was his paean to Labour history that roused the conference as no other speaker has. 

The party's deputy channelled the spirit of both Hugh Gaitskell ("fight, and fight, and fight again to save the party we love") and his mentor Gordon Brown (emulating his trademark rollcall of New Labour achivements). With his voice cracking, Watson recalled when "from the sunny uplands of increasing prosperity social democratic government started to feel normal to the people of Britain". For Labour, a party that has never been further from power in recent decades, that truly was another age. But for a brief moment, Watson's tubthumper allowed Corbyn's vanquished opponents to relive it. 

George Eaton is political editor of the New Statesman.