Rakuten and Amex Launch Credit Card That Rewards Loyalty, Paves Way to 10% Dining Discounts

American Express and Rakuten have launched a co-branded credit card designed to drive loyalty among Rakuten users with up to 10% cash back on restaurant spending.

The Rakuten American Express Card’s aggressive rewards structure highlights a growing trend among credit card issuers: the value of retaining existing customers even if it means offering them unparalleled incentives. 

The new card offers cardholders “industry-leading Cash Back rewards with no annual fee,” according to a press release.

Prior to the card’s release, shoppers were able to access discounts on their favorite brands of apparel, dining, health and beauty, and grocery goods on Rakuten’s platform.

The new Rakuten American Express Card amplifies the savings the shopping rewards company offers. Shoppers can join Rakuten’s platform for free, download its app or browser extension, and begin earning cash back as they make purchases.

With the new credit card, Rakuten members can earn up to 4% cash back on purchases in addition to what they receive when they shop on Rakuten’s platform. 

Cardholders can earn 10% cash back at over 22,000 Rakuten-partnered restaurants — 5% from the card and 5% from Rakuten — making dining out more affordable.

In a press release, Will Stredwick, SVP and GM of Global Network Services for North America at American Express, said both companies are dedicated to rewarding customers. 

“The Rakuten Card will bring the offers, experiences, and security benefits of American Express to even more rewards-savvy shoppers,” Stredwick added.

Credit card startup Imprint powers the Rakuten American Express Card and First Electronic Bank will issue the card. Imprint, a 5-year-old financial technology company, is making inroads in the credit card industry.

Imprint, which recently raised $70 million in capital, boosting its valuation to $900 million, “beat out banks in a competitive bidding process” for the new Rakuten card, according to a CNBC report.

The deals the company has forged with established names in the credit card arena provide examples of how fintechs can play an important role in the payment ecosystem.

Imprint’s CEO, Daragh Murphy, indicated to CNBC that the fintech may be close to securing other deals with significant players in the card industry.

“We’re talking to Fortune 500 companies about being their partner and them choosing us over Synchrony, over Barclays, over U.S. Bank,” Murphy said. “We have to kind of walk and talk like we’re a big, important company, even though we still have a startup ethos.”

Imprint recently raised $70 million in capital and is seeking partnerships with other companies.

The company’s walk and talk apparently impressed American Express and Rakuten enough to feel comfortable putting their new card program in the fintech’s hands. 

The partnerships behind the new card show that companies of different sizes and capabilities can benefit by leveraging each other’s strengths to deliver a competitive product.

Rakuten’s CEO and President, Amit Patel, spoke to the benefits of teamwork in the press release when he said the new card “combines the power of Rakuten’s Cash Back and rewards program with Imprint’s advanced technology and the unique benefits of the American Express network to bring even more value to our members.”