Ride-hailing company Uber, Inc. has teamed up with Barclays, Inc. to promote a new rewards credit card through Uber’s mobile app. The companies plan to give customers the ability to earn miles, points, and other perks based on their everyday spending.
To compete with other rewards credit cards, Uber and Barclays are offering the card for free, with the opportunity for a $100 starting bonus and an annual $50 credit on digital subscription services like Hulu and Netflix. The card has an impressive return rate for purchases with “4% for dining, 3% for airfare, and 2% for Uber rides and many other online transactions”, according to Reuters. The purpose of these incentives is to attract new customers, and also to give priority to their card instead of other credit cards that customers may use.
According to The New York Times, this new initiative by Barclays and Uber is an example of “another gambit in the post-financial crisis bidding between credit card issuers for customers who will bring in transaction fees from merchants and pay to borrow at interest rates upwards of 15 percent.”
The reward system for the Uber card is tailored for customers to use it to its fullest optimization. There isn’t a limit to the total number of points they can earn with the program if the customer is in good standing with the bank, but “redemptions for Uber credits start at 500 points for $5, and there is a $500 daily limit for redemptions for Uber credits,” according to Forbes. These credits do not expire, but they are also non-transferable between accounts. These credits may also only be used in the United States for now, and it is possible for users to combine these credits with other promotions that Uber may be offering at the time.
There is a lot of potential in the card, and it will be interesting to see how it competes with other popular banking services, such as Citigroup and American Express. The wide range of incentives is quite attractive for those who are looking to try a new credit card, and this it will be ideal for those who are committed Uber users.