Samsung Launches Galaxy Card, Its Answer to the Apple Card
Samsung has announced the Galaxy Card, a credit card issued by Barclays on the Visa network, offering up to 5% cash back on Samsung purchases and 3% when using Samsung Wallet. The card has no annual fee and applications open July 22.
Nearly seven years after Apple introduced the Apple Card, Samsung is entering the credit card market with the Galaxy Card, announced two days before its second Galaxy Unpacked event of the year. The card is issued by Barclays on the Visa network, while the Apple Card uses MasterCard and is transitioning from Goldman Sachs to Chase. The physical Galaxy Card is made from recycled steel, not titanium, and the virtual card is provisioned to Samsung Wallet.
Key features include no annual fee and cash back rewards: 5% on purchases made directly from Samsung in the US (in-store or online), 3% on purchases made with the Galaxy Card via Samsung Wallet, 2% on streaming service subscriptions, and 1% on all other purchases with the physical card. Cash rewards can be redeemed as a statement credit or transferred to a checking or savings account. The APR varies, but there are no foreign transaction fees. Additional perks include a 20% discount on Samsung's VIP Advantage membership and a $200 cash reward after spending $2,000 in the first 90 days. Applications open on July 22.
Since Samsung Wallet is only available on Samsung devices, users who switch to another smartphone brand lose key perks but can still use the physical card and manage their account through BarclaysUS.com. Similarly, Apple Card users switching to Android retain their physical card but lose access to Apple Wallet and the 3% daily cash perk on Apple purchases.
Industry experts note that the rewards are designed for loyal Samsung customers. Brian Riley, director of Credit Advisory Services at Javelin Strategy, says entering the credit card space helps Samsung boost brand presence and loyalty. He points out that many cardholders don't fully benefit from rewards if they carry a balance and incur interest. Sara Rathner, a credit card expert at NerdWallet, says the 3% back on Samsung Wallet transactions is compelling and could encourage everyday use, like tap-to-pay on transit. She also credits Apple with innovative features like showing interest rates before a credit pull, which other cards are adopting. Ultimately, the Galaxy Card aims to increase brand loyalty, similar to other co-branded cards.
