CHICAGO–The airline points battle has expanded to a new area where credit unions compete–debit cards—while there is another new entrant in the ultra-competitive credit card space.
Two airlines have partnered with Galileo on debit rewards. United Airlines has introduced the MileagePlus Debit Rewards card, which is powered by Galileo, SoFi’s tech platform, and which offers all the traditional benefits of a debit card with unique MileagePlus benefits.
According to The Points Guy, consumers should be careful about getting “too excited,” as “this isn’t one of those lucrative credit cards that offer scores of bonus miles and perks.”
“The economics of debit cards (thanks in part to the Durbin Amendment) make it so that United and its issuing bank (Sunrise Banks) aren’t going to make as much money from interchange and revolving credit as they would from a credit card, so the card won’t be as generous,” the Points Guy stated. “When asked how the economics of this card work, United executives essentially said, ‘They work, but we won’t tell you how.’
What’s Included
According to the Points Guy, the limited suite of perks include:
- Earn one mile for every $1 on United purchases
- Earn one mile for every $2 on all other purchases
- Earn 2,500 bonus miles after spending $10,000 per year on your debit card
United will waive the $4 monthly fee as long as the average daily account balance in your debit account is $2,000 or more the report said.
Sign-Up Bonus
“As with other popular debit cards, you’ll be able to lock and unlock the card, as well as set spending limits.
United will also be offering a sign-up bonus of 10,000 bonus miles when you open an account and spend $500 within the first four months of card membership,” the Points Guy said. “There are no travel or Premier benefits with the card, but you are allowed to open both a United debit and credit card.”
You Are Now Free to Move About Debit Rewards
Separately, Galileo Financial Technologies is partnering with Southwest Airlines to launch of the new Rapid Rewards Visa debit card.
Capital One, T-Mobile Partner on Credit Card
Meanwhile, Capital One and T-Mobile have partnered to launch a new credit card: the T-Mobile Visa.
The co-branded card is available only to existing T-Mobile customers and is designed to integrate directly with the carrier’s services — but its biggest draw might be tied to a perk that T-Mobile quietly took away earlier this year, according to a new report.
The new T-Mobile Visa card earns 2% back in T-Mobile Rewards on everyday purchases and 5% back on phones, devices, or accessories purchased directly from T-Mobile — all with no annual fee. Rewards can be redeemed toward new devices, accessories, or even to pay down your T-Mobile bill.
Return of a Popular Perk
The standout perk, however, is the return of autopay discounts for those who pay with a credit card, a perk that was removed earlier this year.
With the new T-Mobile Visa card, eligible customers can once again save $5 per line (up to 8 lines) on their wireless bill when using the card for AutoPay on qualifying plans — effectively restoring that lost discount for credit card users.
Additional Benefits
Additional benefits include:
- Up to 50% off select hotels and 45% off Pay Now rental cars booked through T-Mobile Travel
- A limited-time 25¢ per gallon discount (up to 20 gallons) on fuel at Shell on Tuesdays through December 23, 2025
Bill Kennedy, Galileo’s CFO and interim CEO, told PYMNTS’ Karen Webster that the timing was right to bring debit into the loyalty mainstream, as travel remains one of the most powerful categories for rewards, and brands like Southwest see the potential to engage customers who prefer debit to credit. “The younger population skews more toward experiences,” he told PYMNTS. “They also skew more to debit. It’s a combination of bringing new customers in, making them loyal to your brand by giving them rewards and access to perks, and building that loyalty with that consumer.”
Galileo has also announced a debit partnership with Wyndham Hotels.
