Payment giant MasterCard (NYSE: MA) has entered the shipping arena. The
company just announced a new program it's calling "Free Shipping by
Mastercard," which offers free shipping to MasterCard customers -- but
there are a lot of conditions.
MasterCard customers can get free two-day shipping under the free subscription model if:
• They pay with a MasterCard (OK, this point is obvious).
•
They purchase their items from partnered companies, a short list that
presently includes Macy's, Kohl's, Wal-Mart, QVC, and Best Buy.
• They make their purchases through MasterCard's portal site.
• They pay for the two-day shipping up front (they're reimbursed up to $20 per order by MasterCard later).
For a $69 year-long subscription, the retailer pool expands to 30 more participants.
Motley
Fool analyst Jason Moser observes that MasterCard is trying to play the
trend of free shipping, which has become a feature many consumers
expect thanks in part to Amazon.com's Prime membership. However, Jason's
skeptical of MasterCard's free shipping program, given how convoluted
the process is, especially in comparison to the seamless experience
Amazon provides.
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