Samsung’s New Rival Credit Card Aims to Attract Apple Users to Its Ecosystem

The ongoing competition between technological giants Apple and Samsung has reached new heights as Samsung prepares to introduce a dedicated credit card in the United States. This addition further intensifies a rivalry already rich with innovative products and services offered by both companies.

Samsung Partners with Barclays for a New Credit Card

According to a recent report by The Wall Street Journal, Samsung is collaborating with Barclays to unveil a new credit card aimed at competing directly with Apple’s offering in the U. S.market. This upcoming card is set to operate on the Visa network and is expected to feature attractive cashback rewards, which users can transfer to the Samsung Wallet, thus facilitating savings on future purchases.

In addition to the credit card, Samsung aims to roll out a comprehensive suite of financial solutions. This initiative will include prepaid accounts, high-yield deposit accounts, and an enhanced ‘Buy Now, Pay Later’ program. Together, these offerings are designed to strengthen Samsung’s position against the Apple Card and Apple Pay, thereby enhancing its footprint in the financial services sector.

What is particularly noteworthy is the diverse range of products Samsung markets, extending far beyond smartphones to include an extensive lineup of home appliances. This positions Samsung uniquely; the financial products are not solely a means to boost smartphone sales but can significantly impact the sales of its home appliances, such as televisions, refrigerators, and dishwashers.

Interestingly, Samsung has already established financial products in South Korea as well as in India, which are among the largest consumer markets worldwide, indicating its readiness to challenge Apple in diverse markets.

Comparing the Samsung Card and Apple Card

For those unfamiliar, the Apple Card was launched in 2019 through a partnership with Mastercard and Goldman Sachs. It offers users unlimited cashback of 2% when utilized with Apple Pay, and an even higher rate of 3% cashback for purchases made at designated partner merchants.

However, it has been reported that the Apple Card is resulting in significant losses for Goldman Sachs. Recent discussions suggest that Apple may consider transitioning its card services to JPMorgan Chase. The rapid growth of Apple Card, coupled with strict regulatory requirements to reserve funds, has posed considerable challenges for Goldman Sachs. Should Samsung successfully launch its credit card in the U. S.with Barclays, it may look to Apple’s evolving banking partnerships with JPMorgan as a potential model for its own financial endeavors.

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