The American Express Cobalt has been named one of the best travel benefit-focused credit cards in 2018 by finance blog MoneySense. The Millennial-friendly card relies on a point-based system that contributes to convenience and deals in a number of categories, including travel and entertainment.
For every month that users spend $500 on their American Express Cobalt, they gain 2,500 extra points. In addition, for every $1 spent at the grocery store, restaurants, and other food-related businesses, individuals earn five points, while for every $1 spent on travel or transit buys -- including flight, public transit, cabs, etc., they earn two points.
The points on the American Express Cobalt can be used for flights anytime or to cover taxes and fees. In addition to this, users enjoy a number of travel benefits -- from flight delay and lost or stolen baggage insurances to hotel burglary and emergency travel insurances.
With this new card, AMEX strays away from its traditional reward system to introduce much higher flexibility and gives its younger members more freedom and customization options.
Millennial-Friendly Credit Card Perks
American Express Cobalt Boasts Travel-Specific Benefits
Trend Themes
1. Point-based Reward Systems - Disruptive innovation opportunity: Other credit card companies can explore implementing point-based reward systems to attract millennial customers.
2. Travel-focused Credit Cards - Disruptive innovation opportunity: Banks and credit card companies can develop credit cards with travel-specific benefits to cater to the growing demand for travel perks.
3. Flexible and Customizable Credit Card Options - Disruptive innovation opportunity: Financial institutions can introduce credit cards that offer higher flexibility and customization options to meet the needs of younger members.
Industry Implications
1. Credit Card Companies - Disruptive innovation opportunity: Credit card companies can update their offerings to appeal to the millennial market by incorporating more travel benefits and flexibility.
2. Banks - Disruptive innovation opportunity: Banks can launch credit cards with travel-specific perks to attract customers who frequently travel for business or leisure.
3. Financial Institutions - Disruptive innovation opportunity: Financial institutions can develop innovative credit card options that cater to the preferences and lifestyles of millennial customers.