Uber Rolls Out a Credit Card

Summary

WSJ Your Money Briefing: “Uber Rolls Out a Credit Card”

Date: August 1, 2017
Host: Charlie Turner (Wall Street Journal)
Guest: Anamaria Andriotis (WSJ Credit Card Reporter)

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Episode Overview

This episode explores Uber’s entry into the credit card market with the announcement of a new co-branded credit card for US customers, issued in partnership with Barclaycard and running on the Visa network. The discussion covers the motivations behind this move, its implications for the credit card and ride-sharing industries, Barclaycard’s strategic growth, and the evolving landscape of rewards cards—particularly how companies target millennials and adapt to changing travel preferences.

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Key Discussion Points & Insights

Uber’s Credit Card Launch and Industry Context

• Uber’s Card Details:
  • Expected rollout: Fall 2017 (01:15)
  • Issuer: Barclaycard (Barclays unit)
  • Network: Visa
  • Usage: Usable within and outside Uber (01:20)
  • Rewards/benefits: Not yet disclosed (01:21)
• Competitive moves:
  • Lyft, Uber’s main rival, is also rumored to be developing a similar card (01:45)
• Positioning in the Credit Card Market:
  • First major co-branded entrant focused on ride-sharing services (01:53)
  • Travel sector co-branding historically dominated by airlines and hotels (01:49)

The New Sector for Credit Cards

• Ride-sharing as a new category:
  • “What’s also very interesting here is that ride sharing is a relatively new sector in the credit card market.” – Anamaria Andriotis (01:44)
  • Existing travel sector cards mainly for airlines/hotels, not car rentals or similar services (02:30)
• Millennial Appeal:
  • Companies like AmEx are incorporating Uber benefits to attract younger users
    • Example: AmEx Platinum card revamped with $200 in Uber credits per year (03:00)
  • “Several credit card lenders have been trying to appeal to more millennials and have been tacking on Uber services to their cards.” – Anamaria Andriotis (02:35)
• Implications for Credit Card Market:
  • Possible rise of new types of co-branded cards
  • Potentially diminished appeal for non-Uber cards offering Uber-based perks (03:34)

Barclaycard’s Position and Strategic Growth

• Barclaycard in the US market:
  • Not a top-of-mind issuer for most, but currently the 9th largest US card lender by purchase volume and balances (04:22)
• Recent Wins for Barclaycard:
  • Acquired the JetBlue card (formerly at AmEx)
  • Co-issuer of American Airlines cards (alongside Citi) (04:38)
• Uber’s Unexpected Choice:
  • “It is a bit of a surprise...one might have expected maybe Uber to go with a really big name in the credit card sector.” – Anamaria Andriotis (04:46)
  • Reflects Barclaycard’s growing influence and reputation

Anticipated Questions and Uncertainties

• Rewards Structure & Market Impact:
  • Key details, especially on rewards, are still under wraps (05:25)
  • Will Uber’s card disrupt the card market or compete on familiar terms?
• Next Steps:
  • Full details expected by product launch in the fall (05:44)
  • Observers await whether Uber’s card becomes a trendsetter or disrupts current credit card offerings

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Notable Quotes & Memorable Moments

• “There aren't really details right now on what kind of benefits or rewards would be available with this, but the card will be able to be used outside of Uber.”
  – Anamaria Andriotis (01:21)

• “This appears to be the first sort of real deal coming to market with a ride sharing co branded card with the Uber one.”
  – Anamaria Andriotis (01:53)

• “Several credit card lenders have been trying to appeal to more millennials and have been tacking on Uber services to their cards.”
  – Anamaria Andriotis (02:35)

• “Barclaycard...is not one that would come to mind for most people out there. But this is a company that has been growing in the US and right now they rank as the ninth largest US card lender.”
  – Anamaria Andriotis (04:22)

• “But companies are tight lipped on this right now. But we should have more details hopefully soon.”
  – Anamaria Andriotis (05:25)

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Timestamps for Important Segments

• 00:39 – Introduction to Uber’s credit card launch
• 01:15 – Expected timeline and usability of card
• 01:44 – Rivalry with Lyft and broader market implications
• 02:30 – Distinction from other travel sector cards
• 03:00 – Example of AmEx Platinum changes for millennials
• 04:22 – Barclaycard’s US market position
• 05:25 – Pending details and market speculation
• 05:44 – Expected timing for more information

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Flow & Tone

The conversation is informative, measured, and plainly worded, focusing on facts known at the time, reasonable speculation about industry trends, and clear, market-aware analysis. Anamaria Andriotis carefully avoids hype, maintaining a practical and forward-looking perspective—mirroring the Wall Street Journal’s journalistic tone.

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This episode is an essential listen (or read!) for anyone interested in the intersections of fintech, personal finance, and the everyday evolution of customer loyalty in a digital world.

Transcript

[Small Business Owner]

Access to affordable credit helps me pay my employees, but I don't really need it.

[Advocate for Durbin Marshall Bill]

Inflation is killing me, but who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill.

[Small Business Owner]

See banks and credit unions help small businesses make payroll. This bill would cut the vital resources

[Advocate for Durbin Marshall Bill]

they need while increasing megastore profits. They deserve it, don't they?

[Anamaria Andreotis]

Tell Congress Stop the Durbin Marshall money grab for corporate megastores Paid for by the Electronic Payments Coalition.

[Wall Street Journal Announcer]

This is yous Money Matters from the Wall Street Journal.

[Charlie Turner]

Welcome to youo Money Matters. I'm Charlie Turner in New York. If you use ride hailing services, your next credit card might say Uber. Uber Technologies is rolling out a credit card for its US customers and it's using Barclaycard, a unit of Barclays, as the card issuer. Visa is expected to be the network for the card and Uber's main rival, Lyft is also said to be working on rolling out a credit card. Here to talk about the ride sharing fight for your wallet is Wall Street Journal credit card reporter Anamaria Andreotis. First, Ana Maria when is the Uber credit card expected to be available to consumers?

[Anamaria Andreotis]

That's expected to be available starting in the fall of this year. There aren't really details right now on what kind of benefits or rewards would be available with this, but the card will be able to be used outside of Uber. This will be a co branded card that consumers will able to use both when they are using Uber services, but also for other purchases that they're making.

[Charlie Turner]

And this could obviously help Uber lock in more customer relationships, especially as it fights against Lyft.

[Anamaria Andreotis]

Correct. And so we are also hearing that Lyft is working on rolling out a credit card. That's according to some people familiar with the company's plans. And so it'd be interesting to see what kind of fight will occur there between the two companies. What's also very interesting here is that ride sharing is a relatively new sector in the credit card market. So the travel sector in the credit card market is quite big, but that has been dominated by airlines and hotels where there's a bunch of co branded cards. This appears to be the first sort of real deal coming to market with a ride sharing co branded card with the Uber one.

[Charlie Turner]

Aren't there also relationships with car rental companies or am I?

[Anamaria Andreotis]

So that's a little bit different because in this case, I mean this is a different kind of industry and really what's dominated in the travel sector haven't been those types of relationships but rather the hotels, the airlines. And what's also been going on recently is that several credit card lenders have been trying to appeal to more millennials and have been using have been tacking on Uber services to their cards. So this gives us a general idea of how appealing this is to the credit card market. For example, like American Express, its Platinum card, when the revamped its rewards offering on that card earlier this year, one of the things it did is it added Uber credits to the card where card users would be able to get like $200 in Uber rides per year. And that's something that the company has been talking a lot about in its efforts to attract millennials. And so what we're now seeing is this company is now trying to do its own thing. So that could have implications. One for could we be seeing a new type of co branded card, a new type of sector for credit cards? Also would that maybe result in there being less appeal for other cards that are tacking on Uber services? So a lot of questions right now. However, it is quite interesting that it appears that a new type of co branded card and sector is developing.

[Charlie Turner]

I'm speaking with credit card reporter Anamaria Andreotis of the Wall Street Journal and you're listening to your Money Matters. Thanks for listening everyone. Ana Maria it seems like it's an interesting decision, I guess, for Uber to go with Barclaycard. It's not really the biggest card issuer. It's what is it barely in the top 10.

[Anamaria Andreotis]

So it's not the biggest card issuer. It's not one that would come to mind for most people out there. But this is a company that has been growing in the US and right now they rank as the ninth largest US card lender. That's based both on purchase volume and balances. In fact, Barclaycard Card should, it appears, maybe not be underestimated, not only given this win with Uber, but they've had a recent string of wins. They recently got the JetBlue credit card. That account used to be with American Express. They're also one of the issuers of the American Airlines card, which is also shared by Citi. It is a bit of a surprise. I guess one might have expected maybe Uber to go with a really big name in the credit card sector. But this is a company that is definitely growing and becoming sort of more of a force to be reckoned with in the card market. But again, we have to wait and see. What are the rewards going to be on this card? Is it going to have sort of a different structure. Is it also kind of going to be, I don't know, like a disruptor in the card market. But companies are tight lipped on this right now. But we should have more details hopefully soon.

[Charlie Turner]

Well, hopefully soon, yes. You said the card is going to be rolled out in the fall. Could we hear about rewards by the time it's released?

[Anamaria Andreotis]

That should be the case. I mean, a Barclaycard spokeswoman did say that the card will be available in the fall. So that would mean that we should have details by that point for sure on what kind of terms and rewards this card will have.

[Charlie Turner]

Wall Street Journal credit card reporter Anna Maria Andreotis, thank you very much for joining us.

[Anamaria Andreotis]

Thank you.

[Charlie Turner]

And that's your Money Matters. I'm Charlie Turner at the Wall Street

[Wall Street Journal Announcer]

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[Charles Schwab Podcast Announcer]

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