Samsung launches Galaxy Card with up to 5% cash back

Samsung is stepping into the credit card business nearly seven years after Apple launched the Apple Card, rolling out the new Galaxy Card just two days before its second Galaxy Unpacked event of the year, where the company is expected to unveil new smartwatches and foldables.

Issued by Barclays on the Visa network, the Galaxy Card comes with both a physical card and a virtual version that can be added to Samsung Wallet. Unlike Apple’s titanium card, Samsung’s physical card is made from recycled steel. Samsung says the card has no annual fee and no foreign transaction fees, though the APR varies by cardmember.

Cardholders can earn:

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• 5% cash rewards on all in-store or online purchases made directly from Samsung in the US
• 3% cash rewards on purchases made with the Galaxy Card using Samsung Wallet
• 2% cash rewards on streaming service subscriptions
• 1% cash rewards on everything else with the physical card

Rewards can be redeemed as a statement credit or transferred to a checking or savings account. Samsung is also offering a 20% discount on its VIP Advantage membership, which includes extended device protection, specialized support, and exclusive deals, plus $200 in cash rewards after spending $2,000 in the first 90 days. Applications open on July 22.

Samsung says the Galaxy Card is not limited to Samsung device owners, but the ecosystem tie-in is obvious. Samsung Wallet only works on Samsung smartphones and watches, so users who switch brands can keep using the physical card and manage the account through BarclaysUS.com, but they lose the Samsung Wallet-linked perks.

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The broader pitch is less about reinventing credit cards than deepening customer loyalty. Brian Riley, director of Credit Advisory Services at Javelin Strategy & Research, told Wired that cards are essentially commodities, and the differentiator is how consumers use rewards to maximize value.

“Cards are basically a commodity at the end of the day; how you differentiate them is really what makes the difference. That’s really the big deal here—how you use your card.”

Riley also warned that rewards lose their value when cardholders carry balances and pay interest. He argued that Apple oversold the Apple Card, which never became a mainstream industry challenger.

Sara Rathner, a credit card expert at NerdWallet, struck a similar note, calling the Apple Card underwhelming overall but saying Apple did push the industry forward with features like preapproval transparency, easy activation, strong app design, and daily cash rewards.

She said Samsung’s 3% rate for purchases made through Samsung Wallet is particularly attractive. For Samsung users who regularly tap to pay, including for things like New York City subway rides, that reward rate could be the card’s most compelling feature.