Credit card issuers have to come up with new ways to not only attract new customers but retain existing users as well. When Chase launched their new premium travel credit card for the annual fee of US$450, not too many people were enthusiastic about the concept. But as it turns out, the perks that come with it may be worth considering. A desperate grasp at straws by financial institutions, or an example Bitcoin debit card providers should follow?
The New Chase Sapphire Reserve Travel Card
As the name suggests, the new travel card issued by Chase will not be for everyone. The annual price of US$450 will turn away a lot of people, and rightfully so. In exchange for this price, however, users will receive three points per spent dollar on travel and dining around the world. Additionally, they will learn one point per dollar on all other purchases.
But there is a twist, as the card also comes with an annual US$300 statement credit to be used for travel purchases. Additionally, there is the application fee credit of up to US$100 for Global Entry or TSA PreCheck. But there is also Priority Pass Select airport lounge and a 100,000 point sign-up bonus for whoever spends US$4,000 or more in the first three months.
This boatload of rewards may set off the initial annual US$450 price, assuming one travels a lot. For business people, this card will be far more appealing compared to other offerings. The 100,000 points bonus converts to US$1,500 to be used for one’s next trip or vacation. Add the US$300 on top of that, and a free holiday could be yours, as a Chase Sapphire Reserve Travel Card holder.
While premium reward cards have a certain appeal, they are all but useless for people on a [tight] budget. Big spenders will reap plenty of Chase rewards, whereas the average person on the street will never enjoy these benefits. Moreover, there is the topic of qualifying for such a card, based on one’s existing credit score.
Bitcoin Debit Cards Are More Appealing To Average Consumers
This is another example of how different Bitcoin debit cards can be. Similar to the Chase cards, they can be used to make purchases and spend money on travel. Unfortunately, most of these cards offerings have no point incentive system or even cashbacks. Then again, they also have little to no monthly or annual fees, and they allow users to spend cryptocurrency, rather than create more debt through excessive usage.
However, it would be great to see some incentive attached to Bitcoin debit cards. Earning points or cashbacks for services would be a good way of promote this payment method. While the most important aspect is how people can’t spend more than their available balance, an extra incentive could go a long way.