Chase Encourages Mobile Wallet Use With Reward Offerings
New reward options for Chase card users may get them to download and use a mobile wallet app, even if they’ve been reluctant to do so before. Chase Freedom is offering 5% cash back on up to $1500 in purchases over the first quarter of 2018, when they make purchases with Chase Pay, Apple Pay, Android Pay, or Samsung Pay.
BJ Mahoney, general manager of Chase Freedom, explained why the company is adding an incentive for folks to use mobile wallets. “We want Chase Freedom cardmembers to try – and enjoy – the convenience of mobile wallets. They can maximize their rewards not only by paying for necessities, but also by splurging, like for their favorite coffee, when using a mobile wallet.”
Besides getting 5% back for mobile wallet purchases, Chase cardholders can get 5% back on anything they buy at a gas station, and on their bills for internet service, cable television, phone service, Spotify, Hulu, and Netflix.
The popularity of rotating categories and cash back credit cards
Many cash back rewards credit cards employ the strategy of offering rotating reward categories, with a 5% back offer that changes with the seasons. Usually, cardholders have to activate the offer in order to take advantage of it, either by calling or clicking online. Once they’ve done so, they earn 5% back on all purchases in whatever the given category is that quarter. There’s almost always a cap on the rewards they can earn, with cardholders typically offering a maximum of $75 cash back per quarter, on purchases totaling $1500. After that, cardholders continue to earn 1% back on all purchases.
The spending categories are usually in line with the seasons, with folks getting extra cash back on home improvement purchases in the spring, department stores during the winter holidays, and amusement parks in the summer, just for example. Cash back credit cards tend to be available to folks with average to good credit, making them more attainable to a person with no credit history or limited credit. An elite rewards card might not approve the application of someone with limited or no credit, but a cash back card with rewards in rotating categories is generally more accessible to people with a range of credit scores.