Barclays Samsung card sees strong adoption
Barclays entered the U.S. credit card market in 2004 with a partnership model to differentiate itself. Two decades later, one of its earliest co-branded cards, the Frontier Airlines card, remains a key product. The partnership was recently extended through 2037. In July, the bank launched another co-brand: the Samsung Galaxy Card, which integrates into Samsung Wallet upon approval. The card has significant reach; Samsung says one in seven people globally own a Galaxy phone, and 30% of U.S. smartphone users are Samsung customers, according to Counterpoint Research.
Doug Villone, head of U.S. cards and partnerships at Barclays, described the Samsung launch as unique due to an added layer of coordination with the partner. He said at the Money20/20 conference that the effort is paying off, with adoption numbers exceeding expectations.
Strong Adoption and Future Plans
Villone said adoption of the Samsung card has outpaced the bank’s internal business-case projections. While specific customer sign-up figures are not shared, he noted that more than half of transactions are made through Samsung Pay, and most of those occur outside Samsung’s own ecosystem. This indicates customers are using the card for everyday purchases, not just buying Samsung products. Villone emphasized that overall customer activity, spending, and adoption have met or exceeded expectations so far.
Barclays views the Samsung card as an evolving product, not a “set it and forget it” offering. The bank plans to add more features and functionality over time. Currently, customers can complete about 70% of common servicing tasks within the Samsung Wallet, including making payments, viewing transactions, and redeeming rewards. Villone expressed a desire to increase that percentage and eventually allow customers to handle all servicing needs without leaving the Samsung Wallet ecosystem. He also suggested offering features like servicing chat as a potential add-on.
Differences in Digital and Physical Partnerships
Updating a wallet-based product like the Samsung card is different from refreshing a traditional physical card partnership, Villone explained. Samsung owns the user experience because the card resides within its wallet. While Barclays has many capabilities to offer, it must work closely with Samsung’s development teams to ensure the features fit the Samsung experience. This creates a new layer of coordination. As Samsung’s operating system updates, Barclays can introduce new features seamlessly for consumers, but this requires ongoing collaboration with the partner.
Read Also: PNC Expands Branches, Announces CFO Transition
Looking ahead, Villone envisions a future where customers can perform nearly every possible servicing task from within the Samsung Wallet. The initial launch covered key functions like redeeming rewards, making transactions, paying bills, and locking or activating a card. Villone stated this is not exhaustive. The bank wants to enhance the servicing and usage experience and potentially offer other products in an integrated way to customers.
Longstanding Partnerships and Modern Refreshes
Barclays has other long-standing co-brand partnerships beyond Frontier. The co-branded card with Barnes & Noble is about 20 years old, and the bank’s partnership with JetBlue is 10 years old. The company has learned that product refreshes must happen more frequently than in the past.
It used to be common for co-brand programs to refresh every five to 10 years. Now, Barclays updates products much more often, in many cases every three to four years. Sometimes the changes are cosmetic, modernizing the look and feel of the product. More often, the bank refreshes the value proposition to meet current consumer demands.
Evolving Consumer Expectations
Consumer preferences for co-branded cards have shifted over time. Many programs used to offer 1% to 3% in some kind of rewards currency. Today’s consumers often want different benefits. They might seek status, lounge access, streaming credits, or quadruple points at grocery stores.
