Amazon NewDay Review – Amazon’s Co-branded Credit Cards

Amazon NewDay currently issues two credit cards. Continue reading this article to find out about them and which one is right for you.

Introduction

Amazon and AO.com’s credit card company NewDay have introduced a brand new completely digital credit card with the intention of offering a different option to rivals such as Apple Pay and Google Pay. NewDay is among the leading credit companies in the UK offering credit card services to major retailers and third-party brands as well as under its own brands such as Aqua.

NewDay created the Amazon Mastercard in collaboration with Amazon UK in 2017 and offered customers the option of having their credit card automatically in Amazon Wallet.

In the year 2019, they announced an alliance with AO.com which allows shoppers to pay for purchases with simple and affordable payment options.

What are the benefits Amazon NewDay credit cards have to offer?

Amazon currently has two credit cards from NewDay Ltd: the Platinum Mastercard, which is an award-based credit card, and Classic Mastercard, which is an account that builds credit.

• Amazon Platinum Mastercard: This card gives you the ability to earn 1.5 Amazon Reward Points (or three when you’re a Prime member) for each £2 purchased on Amazon or elsewhere, and 0.5 Amazon Reward Points for each £2 that you spend elsewhere. For every thousand points earned you’ll be awarded a £10 Amazon gift card. The average APR is 21.9 percent (variable). Credit is dependent on the status and terms that apply.
• Amazon Classic Mastercard: Designed to improve your credit score, this card has a representative APR of 29.9 percent (variable). If you complete at least one purchase per month, make your payments punctually, and remain inside your credit limits for twelve months then you’ll be upgraded to an Amazon Platinum Mastercard. Credit is subject to the status and terms that apply.

Both cards present an exciting opportunity to study the development of co-branded landscapes in the UK and US shared landscape.

Analysis of Amazon’s Co-branded Credit Cards

The decision of Amazon to launch the co-branded credit card in the UK is notable in that numerous banks have instituted substantial cuts or completely ended their reward programs as a result of EU fees for interchange. The rates for rewards accrual on this card are competitive, even though they are a bit lower than the rates offered by some UK retailers. The Brexit process has also raised questions about how the UK will eliminate fees for interchange after leaving the EU, and this could provide a more appealing environment for co-branded rewards and cards in the near future.

The launch of the Amazon Prime Rewards Visa Signature Card is well-positioned to compete against other retailer-specific cards in the US like those offered by Target or Costco. Amazon’s Prime program already provides significant value for the online retailer and the new card is placed to help make Prime undoubtedly an appealing bargain. The decision of Amazon to offer metal cards instead of the traditional plastic card is also interesting because it brings yet another metal-based card. Although metal cards might seem like a novelty, they’re popular with consumers because of their status as a talking point. A few consumers also experience an underlying satisfaction carrying heavier metal cards at points of sale, forming an interest in the card that could be crucial given the degree of competition among merchants that issue cards within the US.

Credit Score and Eligibility

The application for the card is submitted online on the Amazon website. There is an effective eligibility checker that gives advice as to whether a person can be accepted to the card. This is a way to avoid a negative impact on a credit score while getting more information about the chances that the card will be accepted.

Is the Amazon Platinum Credit Card Right for You?

If you are a frequent buyer on Amazon, the card will be extremely attractive. This is especially true for those who have Amazon Prime members. The absence of an annual cost could increase the appeal of the card to people who do not use a lot of money on their credit cards. Special offers like the introductory zero-interest rate for three months or the £20 Amazon gift card upon registration help to make the card more appealing to consumers.

Reward gift cards are only available on Amazon. However, with the store having a huge following among customers and offering a variety of merchandise, it’s probable that gifts can be easily used.

Nevertheless, Amazon shopping is actually the perfect spot for the card. If the majority of your spending isn’t through Amazon or you plan to make purchases abroad or seek an opportunity to transfer your balance, It’s best to consider a different option.