Rakuten American Express Card Offers Cash Back and Travel Rewards

What's Happening?

The Rakuten American Express Card is a new offering that allows Rakuten members to earn cash back and travel rewards. The card has no annual fee and provides elevated rewards on Rakuten purchases, dining, and groceries. Users can convert their cash back into American Express Membership Rewards points if they have another qualifying Amex card. The card offers a welcome bonus of $25 after spending $500 within the first 90 days. It also provides benefits such as purchase protection and extended warranties. The card's rewards are distributed quarterly, and it has a variable APR ranging from 19.74% to 33.99%.

Why It's Important?

The introduction of the Rakuten American Express Card is significant for consumers looking for flexible rewards options without an annual fee. It enhances the value proposition for Rakuten users by offering additional cash back on purchases made through the platform. The ability to convert cash back into Amex Membership Rewards points adds versatility for those who already use American Express cards. This card could influence consumer spending habits, particularly among those who frequently shop through Rakuten or dine out. However, the quarterly payout structure and high variable APR may deter some users.

What's Next?

Consumers interested in maximizing their rewards may consider pairing the Rakuten American Express Card with other Amex cards that earn Membership Rewards points. As the card gains popularity, it may prompt competitors to offer similar benefits or adjust their existing reward structures. Users should evaluate their spending habits to determine if the Rakuten card aligns with their financial goals, especially considering the quarterly payout schedule and potential high interest rates.