New credit card could converge loyalty programmes and ancillary revenue

Is credit card technology going to drive the convergence of two airline financial trends, loyalty and ancillary revenue? New York start-up Dynamics Inc. is offering a credit card in which consumers, prior to swiping, press one of two buttons to determine which account the purchase should come from: checking or savings, credit or savings and even credit or loyalty points. It is not pie in the sky: Citi, the world's largest card issuer, has a trial with Dynamics' 'Redemption' card. The question is if airlines, as they increase ancillary offerings, will let passengers use this card to pay in-flight for a Coke or watch the latest Harry Potter with their frequent flyer points.