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- Cardholders can earn up to 2% rewards to redeem as Amazon coupons
Barclays and Amazon have teamed up to launch a new co-branded credit card.
The new Amazon Barclaycard will allow customers to earn cash back rewards on purchases made with the card, which can then be redeemed for Amazon vouchers.
The biggest rewards with the card come from purchases made through the online retail giant.
Amazon and Barclays have partnered to offer a new Amazon Barclaycard to customers
Cardholders will be able to view the cashback value in the Barclaycard app and, once they have earned £5 or more in rewards, they can redeem them for an Amazon gift card of the same value.
The card is currently only available to new Barclaycard customers; existing Barclaycard customers cannot currently switch to Amazon Barclaycard.
What does it offer?
Users earn 1 percent cash back rewards on all Amazon purchases, while Amazon Prime members can earn 2 percent cash back rewards on Amazon purchases during designated shopping event days, such as Black Friday and Cyber Monday.
Customers can also earn cash back rewards for purchases made outside of Amazon, but the rewards are less than what they would get for purchases made on Amazon.
For 12 months, customers can earn 0.5 percent cash back on non-Amazon spending and 0.25 percent after that.
Cashback rewards can still only be redeemed for Amazon gift cards.
The card has no annual fee and customers receive a £20 Amazon gift card when their application is approved.
It also comes with a 0 percent APR for the first six months, and then a representative APR of 28.9 percent.
Cardholders can also access Barclaycard entertainment benefits, including early bird pre-sales for concerts and a 10 per cent discount on pre-sale tickets when they use their Amazon Barclaycard to pay.
Amazon Barclaycard customers also get 10 percent off food and drinks at selected locations.
Rob Burgess, editor of frequent-flyer website Head for Points, said: “I wouldn’t put any value on the other benefits, which 95 percent of cardholders will never use.”
Barclays and Amazon said they aim to open applications to existing Barclaycard customers in the coming months.
How does it compare to other credit card offers?
The Amazon Barclaycard offers a generous rewards earning rate compared to other credit cards such as the Marks & Spencer card, the John Lewis Partnership card or the Sainsbury’s Nectar Mastercard credit card.
These cards offer between 0.1 percent and 0.25 percent cash back in rewards.
Rob Burgess adds: ‘The 0.5 per cent yield is surprisingly attractive for a consumer credit card.
‘Receiving 0.5 percent cash back is pretty cool. While you get it in the form of Amazon credit and not cash, most people would actually consider Amazon credit to be a virtual equivalent to cash.
‘The £20 sign-up bonus is also more generous than the Nectar Mastercard credit cards from M&S, John Lewis and Sainbury’s, which typically don’t have any bonuses.’
Burgess added: ‘The only negative would be the lack of Apple Pay integration, which will be a real negative for the younger demographic that I assume is the target market for this card.
‘However, the Barclaycard Avios card also launched without Apple Pay integration, but gained it a few months later, so this may only be a short-term issue.’
For credit card holders who want to accumulate points to redeem on flights or hotel stays, the American Express Gold card offers 20,000 membership points, which convert to 20,000 Avios or when you spend £3,000 in three months. It also includes four free airport lounge passes and £120 Deliveroo credit.
The card is free for the first year and can be cancelled at any time. After the first year, there is an annual fee of £195.
The Amex Platinum card comes with 40,000 Membership Rewards points for signing up and spending £6,000 within three months. These points convert to 40,000 Avios or many other airline and hotel programs.
The Platinum card has a higher annual fee of £650 and therefore the APR is much higher at 704.6 percent.
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