Capital One seems to be resisting the trend
among US banks to drop their rewards and loyalty schemes.

The fifth largest bank by assets since

acquiring the US online banking arm of Dutch bank ING for $9bn
in June, Capital One has dropped an attractive card on the
shrinking cards rewards and loyalty market in the US with the
introduction of a 1% immediate cash-back card that will earn its
users 50% of the total card spend after a year.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

EVP of US Card at Capital One, Mike Wassmer
said the launch of the new card was raising the bar for
cash-back.

“Reward programmes have become increasingly
complex. This new card from Capital One offers terrific value to
customers that are looking to earn more cash back in a simple way
and without the complexities and restrictions commonly found in
other cash reward cards,” he said.

The Capital One Cash card has flexible
redemption process removing spending minimums and minimum cash
redemption levels.

The bank said there was no limit on the amount
of cash card users can earn and no expiry date for cash-back
rewards.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

 

Swimming against the tide

The launch of the rewards card comes at a time
when many of its US rivals are dropping their rewards and loyalty
schemes or adding extra charges to cards in light of the
interchange rules.

The rank of lenders stamping their feet after
the include TCF, which was the latest lender to announce it is
slashing its rewards scheme;
Wells Fargo, which announced at the end of August that it would
begin to charge debit card users in five US states for purchases
and
USAA, which dropped its rewards scheme in July.

Conversely, Citi announced that it was taking
its
Thank You loyalty scheme to the app store, from where customers
can now redeem their rewards.