Samsung Galaxy Card: A Key Competitor to Apple Card
▼ Summary
– Samsung announced the Galaxy Card, issued by Barclays on the Visa network, nearly seven years after Apple launched the Apple Card.
– The card offers no annual fee and rewards include 5% cash back on Samsung purchases, 3% via Samsung Wallet, 2% on streaming, and 1% on other purchases.
– Perks include no foreign transaction fees, a 20% discount on Samsung VIP Advantage, and $200 cash back after spending $2,000 in the first 90 days.
– The virtual card is provisioned to Samsung Wallet, but switching to a non-Samsung device means losing key perks; the card can still be managed online.
– The Galaxy Card targets loyal Samsung consumers to increase brand presence and loyalty, though its rewards are not considered revolutionary.
Nearly seven years after the Apple Card first hit the scene, Samsung is making its own play for the credit card market with the introduction of the Galaxy Card. The announcement comes just two days before Samsung’s second Galaxy Unpacked event this year, where the company is expected to unveil new smartwatches and foldable phones.
The Galaxy Card is issued by Barclays and runs on the Visa network, while the Apple Card originally partnered with Goldman Sachs and is now transitioning to Chase on the MasterCard network. The physical card is not made of titanium, but rather recycled steel. The virtual version is stored directly in a user’s Samsung Wallet account.
There is no annual fee. Samsung says cardholders can earn 5 percent cash rewards on all in-store and online purchases made directly from Samsung in the U. S., 3 percent cash rewards on purchases made with the Galaxy Card through Samsung Wallet, 2 percent cash rewards on streaming service subscriptions, and 1 percent cash rewards on everything else when using the physical card. Rewards can be redeemed as a statement credit or transferred to a checking or savings account.
The APR varies by cardmember, but the card also has no foreign transaction fees. Additional perks include a 20 percent discount on Samsung’s VIP Advantage membership, which provides extended device protection, specialized support, and exclusive offers, plus $200 in cash rewards after spending $2,000 in the first 90 days. Applications open on July 22.
Because the Samsung Wallet app is only available on Samsung smartphones and watches, what happens if a user switches to a different brand? Samsung says the Galaxy Card is not limited to Samsung device owners and that anyone can use the physical card, but the key perks are lost. Card management is available through the BarclaysUS.com online portal. Similarly, if an iPhone owner switches to Android, their physical Apple Card still works, but they lose access to the Apple Wallet app and the 3 percent daily cash perk on Apple purchases, with account management available through a web portal.
The rewards structure may not be revolutionary, but it is clearly aimed at Samsung’s most loyal customers and card-maxxers who want to maximize points on every dollar spent. Brian Riley, director of Credit Advisory Services at Javelin Strategy & Research, notes that entering this space is crucial for Samsung to strengthen brand presence and deepen customer loyalty.
(Source: Wired)
