Samsung enters US credit card market with Galaxy card to challenge Apple
Seoul, July 22
Samsung takes on Apple with its first Galaxy credit card as the South Korean technology major launched its debut consumer credit product in the United States, expanding its market competition with its primary smartphone rival into financial services, according to a news report by The Korea Herald. Issued by Barclays on the Visa payment network, the Galaxy-branded credit card entered a consumer finance sector that Apple initially joined in 2019.
Samsung Electronics America unveiled the Samsung Galaxy Card on Tuesday, stating that applications for the general public would open online starting Wednesday. The company noted that eligible early-access customers received immediate authorization to submit their applications.
Chai Won-cheol, head of the digital wallet team within the mobile experience business at Samsung Electronics, outlined the primary objectives of the corporate offering.
"Samsung Galaxy Card offers users a new way to be rewarded every time you pay," the news report quoted Chai.
"Users are busy, they need a credit card that simplifies their life and offers them real value -- Samsung Galaxy Card does both," he added.
The credit product carries no annual fee and establishes a structured cash reward system across several spending categories. Under the financial terms, cardholders earn 5 per cent cash rewards on eligible purchases made directly from Samsung and 3 per cent on transactions completed through Samsung Wallet.
Furthermore, the card provides 2 per cent cash rewards on designated streaming services, including Netflix, Disney+, and Spotify, while all other general purchases yield 1 per cent.
To incentivize early adoption, new cardholders can earn an additional $200 in cash rewards after reaching $2,000 in spend within the initial 90 days of account opening. The card issued digitally for immediate online use, alongside a physical premium metal card version featuring a black Samsung logo.
Denny Nealon, Chief Executive Officer of Barclays US Consumer Bank, commented on the commercial deal between the two institutions.
"Partnering with Samsung is a strong example of Barclays partner-first strategy and the innovation we're bringing to the market with some of the world's most recognized brands," the news report quoted Nealon.
Once integrated into Samsung Wallet, the card stored alongside compatible payment cards, personal identification, passes, and digital keys. Samsung confirmed that all wallet operations remain secured by its proprietary Knox protection platform.
The product launch places Samsung directly inside a market segment established when Apple introduced the Apple Card in 2019 alongside issuer Goldman Sachs and payment processor Mastercard.
In January, Goldman Sachs agreed to transfer the Apple Card portfolio to JPMorgan Chase as part of its planned exit from retail consumer banking, a transition expected to require approximately 24 months to complete.
— ANI
Reader Comments
Finally Samsung catching up with Apple in the financial space! The 2% on streaming services is smart - these days everyone has Netflix or Spotify. But I'm curious about the interest rates. In India, we've learnt the hard way that rewards mean nothing if the APR is high. 😅
Good for US consumers, but as an Indian, I'd rather see Samsung focus on improving their service centers here. Their phones are great but after-sales support in smaller cities is pathetic. Don't need another credit card if the core service isn't sorted. 😤
Yeh to badhiya hai! No annual fee and metal card sounds premium. But I remember the Apple Card drama with Goldman Sachs - hope Barclays does better. In India, we have OneCard and other digital-first cards, so competition is healthy. Let's see if Samsung brings this here! 🚀
As someone living in Bangalore but working remotely for a US firm, I find this interesting. More options means better rewards competition. The $200 sign-up bonus is decent, but in India, our credit cards often give better cashback percentages. Still, Samsung's Knox security is top-notch. 👍
From an NRI perspective, this is great - I can use it when I visit the US. But I'm worried about data privacy. Samsung already collects tons of usage data, now they'll have financial data too. In India, we've become more cautious after the Paytm fiasco. Hope RBI regulates this if it comes here. 🤔
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