From Rakuten’s new credit card launch with Imprint and Amex, to Capital One’s reaction to premium card launches, Andrew Davidson, breaks down the key developments redefining the financial services industry. He also sits down to chat with CJ MacDonald, Founder & CEO of Step, and brushes shoulders with celebrities and public figures at Citi’s Strata Elite Credit Card launch in New York City!
Want to discover more of Andrew’s cutting-edge insights on financial products, marketing strategies, and industry innovations? Follow him on LinkedIn, or listen to him as the host of Mintel’s Little Conversation podcast.
Here are the 6 things you need to know:
1. Rakuten launches new credit card with Imprint and American Express
New card alert! “Crafted with steel and available in two colors, the Rakuten American Express Card (from Imprint, issued by First Electronic Bank) is more than a rewards card. It’s a statement.”
- Target: 20 million + Rakuten members
- 4% EXTRA cash back when shopping at Rakuten (up from 3% when Synchrony ran the program)
- 5% extra at restaurant partners
- 2% on groceries and restaurants
- 1% elsewhere
- $25 sign-on bonus
- Amex network benefits: Amex Offers, Amex Experiences, Retail Protection and Extended Warranty (smart…it’s a retail card)
- Steel card available in two colors
- No annual fee
- APR: 19.74% – 33.99%
💡More than one statement being made here
- A statement from Rakuten. Consumers, especially younger ones, increasingly care about the look and feel of their credit cards. By offering a steel card in two color options, Rakuten is tapping into that preference, even for a product that will primarily be used online. According to Mintel, 21% of holiday shoppers last year planned to use a platform like Rakuten to save money or earn rewards. Launching the card well ahead of the shopping season gives Rakuten a head start in building momentum.
- A statement from Imprint. This is an important step for card-as-a-service providers, and a clear signal that Imprint is gaining ground in this space. Taking over from Synchrony, Imprint now powers a card tied to one of the largest online shopping portals in the US. Following recent moves from Cardless with brands like Bilt and Coinbase, the momentum behind fintech-led card issuing continues to grow.
- A statement from American Express. Rakuten joins a growing list of brands launching through Amex’s Agile Partner Platform (APP), part of its Global Network Services division. Since launching in 2022, the APP has supported more than 10 card rollouts while significantly reducing launch timelines from more than a year to just a few months. This latest launch suggests the platform is gaining traction with higher-profile partners.
2. Interview with CJ MacDonald: Founder & CEO of Step
In the latest episode of the Mintel Little Conversation podcast, I sat down with CJ MacDonald, Founder & CEO of Step to discuss how Step has grown to more than 6 million customers and is quietly becoming one of the most influential fintechs in the U.S.
We cover:
- The insight behind Step’s early bet on credit-building for teens
- How Step Black is reimagining the secured card as a premium product
- Why launching a wireless service could be Step’s next growth engine
- What traditional banks still don’t get about Gen Z
- And yes… we talked about an IPO
💡 Step’s bold ambitions
- Redefining financial platforms for Gen Z. Step is blending banking, credit-building, premium rewards, and now wireless service to meet the evolving needs of Gen Z at every stage of their financial journey. Its approach goes beyond traditional fintech by integrating lifestyle and financial tools in one seamless platform.
- Scaling through focus and innovation. From enabling teens to build credit before age 18 to launching standout products like Step Black and Step Mobile, Step’s growth is rooted in bold innovation and cultural alignment. By staying customer-obsessed while expanding its ecosystem, Step shows how fintechs can scale with purpose.
- Step’s success isn’t accidental. It’s the result of deliberate, focused innovation tailored to a generation long overlooked by traditional finance. The real opportunity now? Earning their trust and evolving alongside them as their financial lives grow more complex.
3. Capital One’s reaction to the recent premium card launches
Don’t count out Capital One! When it comes to the FUTURE OF PREMIUM cards, Capital One is very much in the mix and looking to lead despite recent announcements from Chase, Amex and Citi.
🔮I always say Capital One’s earnings call is a barometer for the state of the industry and Rich Fairbank usually signals where things are heading if you listen carefully.
There were a number of signals on Capital One’s Q2 2025 Earnings Call that pointed to where Capital One sees itself in the premium space both in the near and long term.
Rich Fairbank, Chairman & CEO, Capital One
Source: Capital One Q2 2025 Earnings Call | LinkedIn
💡Capital One signals where it is heading
- “A small number of players are separating from the pack.” This is due to the required investment in lounges, marketing spend and unique access, where the stakes have gone UP. Capital One is continuing to build in each of these areas and still sees the opportunity as worth the investment.
- “We are not trying to copy others” and their “coupon-type” approach. Ouch! Venture X earns at a simple 2X rate, redeemable with any airline. Capital One sees “open space” at its price point ($395) as Chase and Amex escalate.
- “We see opportunities on the network side relative to the higher end of the market.” And here’s the killer quote: “Picture a global brand. A more upmarket brand.” We certainly can! As part of the acquisition of Discover, Capital One picked up Diners Club, an international brand that has faded but is tailor-made for today’s premium consumer. What an opportunity to reinvigorate this storied brand and compete at the top of the market.
And one more signal from me: - Velocity Black? In 2023, Capital One acquired Velocity Black, a luxury AI concierge service with a $3,100 membership fee and a $900 initiation fee. Capital One has not integrated Velocity Black and continues to invest in the brand (it sponsors F1 team Aston Martin). Will we see a Velocity Black credit card running on the Diners Club network in the future? I think we might.
4. Southwest and Chase announce changes to Rapid Rewards cards
Southwest and Chase have announced new fees and benefits impacting ALL FIVE Rapid Rewards credit cards as the airline shifts to a new strategy. Millions of acquisition emails began hitting Southwest Rapid Rewards members’ inboxes, according to Comperemedia, promoting the $99 Rapid Rewards Plus Card and leading with a big sign-on bonus of 100K points for spending $4K in 5 months.
Fees up!
- Rapid Rewards Plus Card: $69 to $99
- Rapid Rewards Premier Card: $99 to $149
- Rapid Rewards Priority Card: $149 to $229
- Rapid Rewards Premier Business Card: $99 to $149
- Rapid Rewards Performance Business Card: $199 to $299
💡Going big on the bonus!
- Relying on the bonus but will it be enough? All three consumer cards, regardless of fee, feature the same 100K bonus, which is worth around $1,400 according to The Points Guy. For a $99 annual fee, that’s a RICH offer compared to much of the current market. But the rest of the value prop is getting a mixed reception. Gary Leff of View from the Wing does a great job breaking it down. The challenge with a value prop that leans heavily on the sign-up bonus is the potential for churn in the future. Southwest is under pressure, so bringing more customers on board first, then figuring out how to engage them, might be the right strategy to buy more time.
- Timing. The timing here is interesting. These changes were announced on the same day as Q2 earnings, which signals how central credit cards are to Southwest’s evolving strategy. They also come at a time when consumer interest in premium credit cards is high, and people are willing to pay more for better rewards and benefits. As a result, there are more options, and the bar is rising for what constitutes value. I see this value proposition continuing to evolve as Southwest’s broader strategy takes shape.
5. Citi launches Strata Elite
The long-rumored Citi Strata Elite Credit Card ($595 + $75 for each authorized user) went LIVE and with it the CITI PLAYBOOK was revealed, rounding out the Strata brand, which includes the no-fee Citi Strata and the $95 fee Citi Strata Premier.
- 12x points on Citi Travel bookings (hotels, car rentals, attractions) and 6x points on air travel and weekend dining
- 1.5x on all other purchases
- Credits include: $300 hotel credit, $200 “Annual Splurge Credit” at select brands, e.g., American Airlines and Best Buy, $200 Blacklane chauffeur service
- Priority Pass Select + four Admirals Club lounge passes
- 1:1 points transfer to American Airlines
- World Legend Mastercard, unlocking premium dining, entertainment, and travel experiences
- Relationship fee waivers for Citigold and Citi Private Client
💡The premium card wars are heating up!
- Scooping up the disenchanted. Launching after the Chase Sapphire Reserve refresh but before the next Amex Platinum update, Strata Elite is timed to capture disillusioned premium cardholders. Think: those fed up with rising fees and coupon-book complexity, a common critique of both Amex and Chase. Citi’s $1,500 in value is more streamlined than Chase’s $2,700, though still more layered than Venture X. As Citi and Capital One distance themselves from the old playbook, expect anti-coupon-book messaging to accelerate.
- American on the way. Strata Elite is the only branded credit card with American Airlines benefits and the press release even includes a quote from Scott Long from American Airlines. That signals more than a partnership; it points to close coordination between Citi and American to align Strata Elite with rumored updates to AA’s own credit cards. These products need to work in sync. Translation? New American Airlines cards are coming.
- Battle of the portal. Citi, Chase and Capital One have anchored their value propositions around their travel portals and momentum is building. According to Mintel, nearly 1 in 5 travel rewards cardholders booked travel through a credit card portal in 2024. As consumers begin comparing portal functionality and pricing, these platforms will become a key battleground in premium card marketing.
6. Inside the Strata Elite launch
Citi gathered a crowd of media, influencers, content creators, and partners for the official launch of the Citi Strata Elite Credit Card at Gitano’s in NYC.
The event was hosted by Henry Golding of Crazy Rich Asians fame and featured a surprise musical performance by multi-platinum, Grammy-nominated Ellie Goulding.
The attention to detail was remarkable, from the art installations (Taj Mahal, Arc de Triomphe, Brooklyn Bridge, all made from giant-sized Strata Elite cards), to the mirrored jetway entrance, to the global culinary carousel and signature cocktails.
In a nod to the recent Sapphire Reserve ads featuring Claudia Schiffer holding a card as the ultimate accessory, Pam Habner, Head of US Branded Cards, even attended with a handbag made of Citi Strata Elite cards!
Source: Mintel | LinkedIn
💡How to launch a credit card in 2025
- Bring the energy. In a crowded marketplace, launching a new card requires more than listing perks. You need to create buzz. Citi delivered excitement, lifestyle, and aspiration without even talking about the product features.
- Know the media moment. This wasn’t just a party, it was a content engine. Every element was designed for sharing, signaling an understanding of how launches now live on social, not just in press releases.
