Will PennCard battle QuakerCard?

QuakerCard officials aren't worried about the possibility of competition from the University ID card's new functions. It seems like a mismatch. In one corner is a 16-month-old, student-founded company offering a popular debit card to University students. In the other corner are two 500-pound gorillas -- Penn and the PNC Bank Corp. -- who are teaming up to add debit functions to the PennCard and enroll many of the same local merchants who already accept the QuakerCard. But the owners of University Student Services, Inc., which offers the QuakerCard, said they aren't concerned about possible competition from the University. And University officials said they're confident that restaurants and other stores on and around campus will eventually allow PennCard holders to make purchases using their bank accounts or a new chip on the identification cards. Approximately 30 local businesses, primarily restaurants or food stores, accept the QuakerCard -- a debit card connected to a student's account with University Student Services. Two-thirds of the businesses offer discounts to cardholders. In contrast, the new PennCard hasn't yet made inroads outside the University, and local merchants have mixed views on whether they would invest the money in the equipment necessary to process the PennCard's magnetic strips and gold chips. An informal Daily Pennsylvanian survey revealed that out of 12 businesses already accepting the QuakerCard, only three said they would like to take the PennCard, while four said they wouldn't and five said they weren't sure. Ken Lee, manager of the 39th Street Hong Kong Cafe, said he "would consider" buying the PennCard equipment, but stressed that he won't drop the QuakerCard because it has increased business and already attracted some steady customers. Currently, students can only use the PennCard in Dining Services hangouts like Chats and the dormitory commissaries run by Penn Student Agencies. The charges either show up on a student's bursar bill or are deducted from a special Dining Services account. But with 10,000 students now toting the new PennCards -- which boast ATM functions as well as a chip that can carry the equivalent of $50 in cash -- administrators hope to sign up local merchants to allow students to swipe their cards and eat. "We expect to have a very healthy response," said Laurie Cousart, director of telecommunications and campus card services. PNC Bank officials have begun contacting University City businesses, and the first crop should sign on early next month, she added. Cousart said she didn't know whether the PennCard's debit functions would give the QuakerCard a run for its money, but the 20,000 undergraduate and graduate students who will have the new cards would seem to provide an instant customer base. "I think that they are different products working in the same market," Cousart said. "I think the consumer will decide." Matthew Levenson, one of the four 1997 Wharton graduates who founded University Student Services last year, refused to disclose the number of its student customers, but said the amount was "significantly" more than 3,000 customers. Levenson and another partner, Michael Vaughan, emphasized that their service is more convenient than the new PennCard because QuakerCard accounts are stored on a separate computer and don't limit the amount of money each card can hold. "We're in touch with [Penn students]," Levenson said. "We know what's going on." Undergraduate Assembly Chairperson and College junior Noah Bilenker, a QuakerCard holder, said the QuakerCard is a better deal right now than the new PennCard because of its discounts and wide accessibility. He said the University was planning to add debit functions to the PennCard before the creation of the QuakerCard, and added that "it's possible that maybe the creation of the QuakerCard actually got the University to get rolling." University Student Services has more than doubled its merchant base since last year, adding businesses such as the Thriftway supermarket at 43rd and Walnut Streets and the Yellow Cab Company, in response to customer requests. So far, the QuakerCard has been available only to undergraduates, but University Student Services plans to begin selling the card to graduate students next week, Levenson said. University Student Services officials declined to disclose the company's revenues, but Levenson said the company had yet to make a profit.