SAN FRANCISCO—Samsung is entering the U.S. credit card market with the launch of the Galaxy Card, a rewards card designed to deepen customer loyalty and expand its ecosystem of financial services, according to reporting by Wired.
The announcement comes ahead of Samsung’s Galaxy Unpacked event, where the company is expected to unveil new foldable smartphones and smartwatches.
According to Wired, the Galaxy Card is issued by Barclays and operates on the Visa network. It includes both a physical card, made from recycled steel, and a virtual version that can be added to Samsung Wallet.
The Features
The card carries no annual fee and offers rewards geared toward Samsung customers. Cardholders can earn:
- 5% cash back on purchases made directly from Samsung in the United States.
- 3% cash back on purchases made using Samsung Wallet with the Galaxy Card.
- 2% cash back on streaming service subscriptions.
- 1% cash back on all other purchases made with the physical card.
Rewards can be redeemed as statement credits or transferred to a checking or savings account, according to the report.
Samsung also said the card has no foreign transaction fees and includes a 20% discount on its VIP Advantage membership, which provides extended device protection, specialized support and exclusive offers. New cardholders can also earn a $200 cash bonus after spending $2,000 within the first 90 days. Applications open July 22.
Physical Card Can be Used, But…
Although Samsung Wallet is available only on Samsung smartphones and smartwatches, Wired reported that the physical Galaxy Card can still be used by consumers who switch to another device ecosystem. However, they lose access to Samsung Wallet-related benefits and must manage the account through Barclays’ online portal.
Industry analysts told Wired the new card represents an effort to strengthen customer loyalty rather than disrupt the credit card market.
“Cards are basically a commodity at the end of the day; how you differentiate them is really what makes the difference,” Brian Riley, director of Credit Advisory Services at Javelin Strategy & Research, told the publication. He said consumers increasingly carry multiple credit cards tailored to different spending categories to maximize rewards.
Rewards Can Lose Value
Riley also cautioned that rewards can lose their value if consumers carry balances and incur interest charges that outweigh the benefits earned through cash back.
Sara Rathner, a credit card expert with NerdWallet, told Wired that Samsung’s 3% cash-back reward for purchases made through Samsung Wallet is among the card’s more compelling features, particularly for consumers who regularly use mobile payments.
A Mirror to Apple
Rathner also said Apple’s credit card, introduced in 2019, demonstrated that technology companies can improve the customer experience through features such as transparent approval terms, streamlined card activation and faster reward payouts, even if it did not significantly reshape the broader credit card industry.
According to Wired, Samsung’s strategy mirrors Apple’s approach of using a branded credit card to encourage customers to remain within its ecosystem, with rewards designed to reinforce continued use of Samsung devices and digital payment services.
