EGG, the direct banking arm of Prudential, yesterday said it had launched the UK's first Internet credit card, with competitive rates and a cashback offer. The group is also launching an Internet shopping site with links to a number of retail brands to encourage Egg customers to enlist. The card gives 1 per cent cashback on all standard retail purchases and offers up to 2 per cent cashback along with regular special deals on online buys.

Egg said it was not setting a target number of customers, but hopes to cash in on the 3.4 million online shoppers in the UK, which it expects to rise by at least another two million in the next six months.

Mr Mike Harris, chief executive of Egg, said applying for the card took about ten minutes, and an immediate decision was made on a customer's suitability.

The card, which is a Visa credit card, can be used at any Visa cashpoint to withdraw money, but the group will charge for non Eggaccount holders.