The news: Bread Financial (formerly Alliance Data Systems) launched the Bread Cashback American Express credit card, which offers unlimited 2% cash back and zero annual fees or foreign transaction fees, per a press release. The card’s benefits also include zero fraud liability, identity theft insurance, and Amex lifestyle perks like dining and entertainment discounts.
The bigger picture: Bread Financial is repositioning itself as a tech-forward and consumer-focused brand.
And the new card highlights Bread Financial’s push into general-purpose cards. Bread Financial is one of the top private-label issuers, so moving into general-purpose cards might indicate a desire to diversify its offerings. General-purpose cards cater to a wider consumer market than co-brand and private-label cards, which lets them rake in higher volume in comparison.
Can it succeed? While the Bread Cashback Amex card offers fewer bells and whistles than other general-purpose cards, it might be attractive for consumers who desire a straightforward card with key security perks.
The card’s uncomplicated rewards structure is a plus.
Consumers like security benefits—and BNPL.
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