This month, Barclaycard and Uber officially released the Uber Visa credit card. The highly anticipated card targets Millennials with benefits catered toward the spending habits of Uber customers. Along with no annual fee, the card includes a best-in-industry 4% cash back at restaurants (including UberEATS); 3% back on airfare, hotels and vacation home rentals; 2% back on online purchases (including Uber rides); and 1% back on everything else. Furthermore, the card includes an easily attainable $100 initial spend offer and card holders earn a $50 credit toward online streaming subscriptions every year they spend at least $5,000. If these benefits aren’t staggering enough, the card also offers up to $600 in mobile phone protection and exclusive access to select events.
In contrast with the trend of racking up thousands of points (usually with huge sign-up bonuses) on their travel cards to pay for a yearly vacation, Barclaycard and Uber anticipate that card holders will be “accruing and using [points] on an ongoing basis,” as stated by Uber’s strategic partnerships head Judy Zhu. As such, Uber plans to leverage the comfort level users already have with its app by allowing card holders to use their rewards to pay for rides. Given Barclaycard’s relative unfamiliarity among U.S. consumers compared to industry giants, Uber is also heavily marketing the card on its website, in its app (which includes an application link) and through paid promotions on major venues such as Facebook and Instagram.
Uber In-App Promotion Screens and Paid Instagram Advertisement
The combination of unprecedented accelerated reward categories, potential statement credits for online streaming services and the anticipated redemption strategy of many small redemptions is a refreshing and enticing offer for any consumer but for Millennials in particular. The card’s no annual fee and stacked benefits will likely make it a popular card, which would give Barclaycard a needed boost as the firm issues only 2.93% of all credit cards in the U.S. Corporate Insight’s Credit Card Monitor will continue to track the Uber Visa in the context of the wider industry, whose recent shifts reveal a scramble to keep pace with evolving consumer expectations.