Citigroup is launching its new Strata Elite premium credit card, targeting affluent consumers with a $595 annual fee. The card aims to cater to customers passionate about travel and dining, offering competitive rewards tailored to their interests. Pam Habner, head of U.S. branded cards and lending at Citigroup, emphasized the need for a card that maximizes rewards without presenting a cluttered array of merchant offers.
This step comes as financial giants intensify their competition for high-end credit card users. Recently, JPMorgan Chase increased the annual fee for its top-tier Chase Sapphire Reserve card to $795, enhancing its benefits significantly. American Express is also set to refresh its Platinum card, which carries a $695 fee, while Capital One continues to promote its Venture X rewards card, priced at $395.
In the U.S., major banks dominate the premium credit card sector, a lucrative area for consumer banking given average interest rates typically over 20%. Citigroup, the third-largest credit card issuer by purchase volume, is re-entering the premium market after discontinuing the Prestige card in 2021. Despite a decline in its smaller retail services card business, Citigroup’s branded credit card revenue grew by 11% in the second quarter compared to the same period last year, reaching $2.8 billion.
Citigroup aims to innovate and enhance its offerings to remain competitive in this high-stakes market. With the Strata Elite card, the bank is positioning itself to meet the evolving needs of its affluent customers, demonstrating a commitment to providing distinct value in a crowded field. The efforts by Citigroup and its competitors reflect a vibrant market focused on providing rich rewards and tailored options for discerning credit card users.