While most consumer credit providers are turning to buy now pay later offerings in the search for growth, American Express still sees opportunity in the credit card market.
Amex has launched the Cashback Credit Card, designed for everyday spending and offering consumers 1 per cent cash back on every $1 spent (0.5 per cent if the spending is with a government body).
There is a 5 per cent bonus rate for the first three months (up to $200 in cashback payments) and a 1.5 per cent cashback rate at participating retailers until March next year.
Other card features include a 20.74 per cent interest rate, up to 55 days interest free and a $10 monthly fee.
Amex is also offering its Plan It feature on the card, which allows the cardholders to pay off their balance in equal monthly instalments with no interest and a monthly fee.
Amex’s show of confidence in consumer demand for credit cards comes at a time when some commentators are calling credit cards a legacy product.
The latest Reserve Bank figures show lenders’ personal finance balances in long-term decline and currently falling by more than 10 per cent a year.
And according to credit bureau Equifax, credit card applications were down by 28.9 per cent in the March quarter, compared with the March quarter last year.
It is the 12th straight quarter of declines in credit card applications that Equifax has recorded.