Amazon Partners With Barclays for Co-Branded Credit Card
Leading e-commerce platform Amazon has partnered with Barclays to launch a new co-branded credit card – Amazon Barclaycard – designed to give UK users rewards on their everyday purchases.
Amazon and Barclays: The convergence of ecommerce and finserv
The partnership is significant, as it underscores the growing convergence of e-commerce and financial services.
It marks Amazon’s first foray into the personal credit card space in the UK, with a tiered rewards system tailored to the e-commerce giant's customer base.
Cardholders earn 1% back on Amazon transactions and 0.5% on other purchases for the first year, with the latter rate dropping to 0.25% thereafter.
In a nod to Amazon's most loyal customers, Prime members enjoy an enhanced 2% cashback during key shopping events such as Prime Day, Black Friday and Cyber Monday.
John Boumphrey, Amazon UK Country Manager, emphasises the customer-centric approach behind the new offering: “We’re excited to introduce the Amazon Barclaycard – designed to offer cardmembers ways to earn rewards for their Amazon purchases and everyday activities with no annual fee.
"Delivering value to our customers is incredibly important to us, so we're delighted to introduce a new payment option that allows customers to save and earn on Amazon.”
The card's digital-first approach is evident in its seamless integration with the Barclaycard app, where users can track and redeem their rewards for Amazon gift cards.
This focus on user experience extends to the application process, with approved applicants receiving a £20 (US$25) Amazon gift card as a welcome bonus.
From a fintech perspective, the partnership showcases the potential for established financial institutions to collaborate with tech giants to create innovative financial products.
Steve Weston, Head of Everyday Money Management at Barclays, adds: “We’re delighted to introduce the Amazon Barclaycard, the perfect credit card for anyone who loves to shop at Amazon and wants to be rewarded for doing so on their everyday spending.
“This partnership highlights our commitment to deliver compelling offers for customers as part of our strategy to grow our UK credit card business.”
Indeed, card features go beyond just mere rewards, offering a 0% APR on purchases for the first six months and no annual fee. After the introductory period, the card carries a representative APR of 28.9%, reflecting the current high-interest rate environment.
Building upon an existing partnership
Interestingly, the Amazon Barclaycard builds upon an existing partnership between the two companies. Barclays already provides 'Instalments' for Amazon UK customers, allowing them to spread the cost of purchases over £100 (US$125) across fixed monthly payments.
The launch comes at a time when traditional banks are facing increasing competition from fintech startups and tech companies entering the financial services space.
By partnering with Amazon, Barclays gains access to a vast customer base and valuable spending data, while Amazon enhances its financial services offerings without the regulatory burden of becoming a bank.
As the lines between e-commerce, banking and technology continue to blur, partnerships like this may become increasingly common.
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