NEW YORK (Reuters) – Morrie Low, a 28-year-old who works for a mobile technology start-up in Seattle, called from vacation in Taiwan to chat about what he has been doing the past year with his Chase Sapphire Reserve card.
Sapphire Reserve is the credit card that shocked the industry when JPMorgan Chase & Co debuted it in August 2016. Upwards of 1 million people signed up as users wrote in Internet posts that its perks, credits and give-backs were so rich people could recoup the $450 annual fee and pickup another $1,000 or so of value.
Low - Trips - Sapphire - Reserve - Card
“It is definitely working out for me,” said Low, recounting trips he made using Sapphire Reserve and other card travel rewards to Miami, Berlin, London, the Philippines and Taiwan.
It hasn’t worked out so well for JPMorgan’s card competitors. And it is not clear when, or if, it will work out for JPMorgan, analysts and bank executives said.
Card - Market - Sapphire - Reserve - Bid
Entering the premium card market with the Sapphire Reserve bid, JPMorgan dramatically undercut the pricing of the Platinum Card of American Express Co and the Prestige Card of Citigroup Inc. It also lured credit card spending from customers of Bank of America Corp.
An American Express executive earlier this year called the move a “full frontal assault” on the Platinum Card. On Thursday, a Citigroup executive said that after JPMorgan’s move Citi changed course and turned its marketing toward no-fee cards that offer free borrowing for as long 21 months instead of travel rewards.
Focus - Rewards - Heat - Citigroup - Chief
“We shifted our focus away from rewards because of the competitive heat,” Citigroup Chief Financial Officer John Gerspach said in a conference call with reporters after posting quarterly results.
JPMorgan’s invasion of the premium card business illustrates how Chief Executive Officer Jamie Dimon is leveraging the scale and strength of the biggest bank in the United States to undercut...
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