NextCard

Next card was a credit card company trying to take advantage of the growing e-commerce market in the United States. It was founded in 1996, saw a successful IPO in 1999, and became a subsidiary of Amazon.com, the largest online retailer. The year 2000 was a year of growth for Next Card, more than tripled the number of accounts that nearly three quarters of a million. But on 31 October 2001 Next card was placed under requ “new regulatory restrictions” imposed higher capital requirements … Read more »

Next card was a credit card company trying to take advantage of the growing e-commerce market in the United States. It was founded in 1996, saw a successful IPO in 1999, and became a subsidiary of Amazon.com, the largest online retailer. The year 2000 was a year of growth for Next Card, more than tripled the number of accounts that nearly three quarters of a million. But on 31 October 2001 Next card was placed under imposed “new regulatory restrictions,” which could result in higher capital requirements as the next card. Goldman Sachs tries to find a buyer for Next card, but was not successful. On 10 July 2002 Next card accounts were closed.
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from
Andrew Watson,
Ken Mark
Source: Ivey Publishing
11 pages.
Publication Date: Aug 12, 2004. Prod #: 904M38-PDF-ENG
Next card HBR case solution