Samsung introduced the Samsung Galaxy Card with 5 percent cash rewards on all in-store or online purchases made directly from Samsung in the US. The card also links rewards to Samsung Wallet use, and applications open on July 22.
Barclays and Visa
Barclays issues the card on the Visa network, and Samsung says the physical version is made of recycled steel. The account has no annual fee, no foreign transaction fees, and an annual percentage rate that varies by cardmember.
Samsung says cardmembers earn 3 percent cash rewards on purchases made with the Galaxy Card using Samsung Wallet, 2 percent cash rewards on streaming service subscriptions, and 1 percent cash rewards on everything else with the physical card. Rewards can be redeemed as a statement credit or transferred to a checking or savings account.
Brian Riley on card value
Brian Riley, director of Credit Advisory Services at Javelin Strategy & Research, said entering the space is important for Samsung to increase brand presence and loyalty. He also said, "Cards are basically a commodity at the end of the day; how you differentiate them is really what makes the difference."
Riley added, "That's really the big deal here—how you use your card." He said cardmembers can start revolving on the product and accumulate interest on the unpaid balance, and that interest charges can wipe out the value earned by the rewards.
Samsung Wallet perks
Samsung says the Galaxy Card is not limited to Samsung device owners, and anyone can use the physical card. Cardmembers lose the key perks if they switch to a different smartphone brand, while the account itself can still be managed through a BarclaysUS.com online portal.
The card also comes with a 20 percent discount on Samsung's VIP Advantage membership, which offers extended device protection, specialized support, and exclusive deals. Cardmembers can get $200 in cash rewards after spending $2,000 in the first 90 days.
Riley said, "Apple oversold it." He said the Apple Card never became a mainstream challenger to the credit card industry, and that the average consumer typically has three or four cards per household.
