Booking.com launches a new credit card product in the US, offering up to 6% cash back for its loyal customers (Nerdwallet). The card is a Visa Signature Credit Card, issued by First Electronic Bank and launched in partnership with Imprint, a co-branded credit card provider.
Not surprisingly, the card is designed to increase spending on the Booking.com platform, as it allows new cardholders to earn $150 in travel credits after spending $1,500 within 90 days, as well as to receive an additional $100 in travel credits if they spend over $15,000 annually (on top of the cashback). Booking.com's loyalty program, called Genius Rewards, was launched in the US in 2013 and has since been a significant driver of its growth.
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Cashback on card products in the US is a totally different ballgame than in Europe due to the higher interchange fees. When a European company offers cashback of more than 0.20% to 0.30% to consumers, it is typically cross-financed through other activities (e.g., the Trade Republic card, which offers 1% cashback through additional investments from consumers). That said, Booking.com's loyalty scheme is probably a great case study for other companies, and not just in the travel industry.
