Amazon.com Inc. (AMZN) is adding another card to the list of perks available to its Prime members.
The Seattle company announced a new credit card for customers of its $99/year Prime Service. The card, which is issued by JP Morgan Chase & Co. (JPM) and Visa Inc. (V), offers a slew of benefits to Prime members. These include 5% cash back on purchases made on the e-commerce behemoth’s website, a 2% rebate at restaurants, gas stations, and drugstores and 1% off on other purchases. Reward points for the card can be redeemed on the company’s website. Customers can also collect credit in lieu of reward points. The card can be used in international transactions without incurring fees and does not have an annual charge associated with it. (See also: How Is Cashback Profitable For Credit Card Companies?)
In limited promotions, Amazon has offered as much as 10% cash back with certain credit cards. However, even the 5% cash back offer seems to be a good deal when you consider that it is a 2% jump from the previous card issued by the same bank. Amazon said existing cardholders will be automatically upgraded to the new card. Other than that, the terms for Amazon’s latest card are not significantly different from other cards available to Prime customers.
Amazon’s latest card is a bid to boost membership to its Prime service, which offers a bunch of other perks such as free shipping and access to original programming via its streaming channel. “We are adding even more value to Prime by offering rewards on Amazon and everywhere else you shop,” said Max Bardon, vice president at Amazon. While the company has not released the exact figure, Prime membership numbers have varied between 55 million to 63 million. An estimate released by Baird Capital last week put it at between 55 million and 60 million with the increase being driven by increased participation from low-income households. (See also: Amazon Prime Becoming Popular In Low Income Households).