Uber, Barclays Get Together on New Visa Card
Ride-sharing services like Uber are tailor-made for mobile payment systems. After all, you really only use such services when you’re out of the house anyway, and you need the mobile technology to even summon the ride in the first place. So why not pay for it using the same tool you used to summon it? Uber, meanwhile, is about to make that point a little easier with help from Barclays in the form of the new Uber Visa card.
The Uber Visa starts up November 2, so those interested can get ready to apply ahead of that date. Approval times will take minutes, according to reports, and when approved, a customer can simply add the Uber Visa to an Uber wallet and use it to pay for rides accordingly.
Reports also note that the Uber Visa won’t just be a handy way to pay for an Uber ride; the Uber Visa can also be used for online purchases, with customers getting two percent point rewards on such purchases. Those who use it for travel will get three percent back, and those who use it for dining will see four percent back.
On the surface, this is a great idea. Uber’s giving points for things commonly bought while traveling, so bundling it all under one umbrella should work. Problem is, though, that Uber’s target market hates credit like fire. Not even a third of millennials have credit cards, according to a 2016 Bankrate study, and even those aged 30 to 49 could pull such a card from their collective wallet in only around half of cases. A lot of millennials are gunshy around debt thanks to student loans or bad memories of the 2008 Great Recession.
While that’s an opportunity for Uber to breach the market and make the Uber Visa millennials’ first and go-to card, it’s a safe bet that this offer will fall on a lot of deaf ears. Some will likely take it—the sheer amount of points-based savings involved is a great deal—but with 60 percent of 18 to 36 year olds cutting spending to save more in a Bankrate study from mere days ago, freewheeling millennials driving the Uber Visa to success might be a bridge too far.