Microsoft and Barclays collaborate to launch Xbox co-branded credit card

Microsoft has announced a collaboration with Barclays Bank within the U.S. to unveil an Xbox co-branded Mastercard. This partnership allows cardholders to earn points from their expenditures, which can subsequently be redeemed for in-game content within the Microsoft Store. The co-branded card will initially be accessible for applications by participants of the Xbox Insider Program on September 21, with a broader release projected for all U.S. residents in the upcoming year.

Within the ambit of this alliance between Microsoft and Barclays, cardholders can accumulate one point per dollar spent on general transactions. Meanwhile, expenses within the Microsoft Store merit a generous five points per dollar. Furthermore, streaming services like Netflix and Disney+, or food delivery platforms such as Grubhub and DoorDash, grant cardholders three points for every dollar spent.

According to Microsoft’s unveiled point-to-cash conversion scheme, a pool of 100 points translates to one dollar. Therefore, a cardholder expenditure of $1,000 bestows an equivalent reward of $10 in points. An initial purchase with this co-branded card yields an additional windfall of 5,000 points, tantamount to $50. Additionally, after the first transaction, cardholders are privy to a three-month complimentary subscription to Xbox Game Pass Ultimate. Existing subscribers have the prerogative to transfer this gratis service to another, though the accompanying points remain non-transferable.

The card presently boasts five distinct designs for selection, with an added option to incorporate the cardholder’s personal gaming tag. It’s compatible with contactless payments and can be integrated seamlessly with electronic wallets. The annual interest rate of the card is contingent upon the individual’s creditworthiness, with tiers set at 20.99%, 26.99%, or 31.99%.

While Microsoft currently harbors no plans to proliferate this co-branded card beyond American shores, should it garner substantial success stateside, there lies the potential to consider similar ventures across global regions, thereby bolstering sales within the Microsoft Store.