SoFi Launches Two New Credit Cards: SoFi Everyday Cash Rewards and SoFi Essential

Rhea-AI Summary

SoFi Technologies, Inc. (NASDAQ: SOFI) has expanded its credit card portfolio with the launch of two new offerings: the SoFi Everyday Cash Rewards Credit Card and the SoFi Essential Credit Card. These cards were developed based on extensive member feedback to serve diverse credit needs.

The SoFi Everyday Cash Rewards Credit Card offers:

• 3% unlimited cash back on dining out and in, including food delivery services
• 2% unlimited cash back on grocery and convenience store purchases
• 1% unlimited cash back on all other eligible purchases

The SoFi Essential Credit Card is designed for building or improving credit scores, with no surprise fees, no annual fee, and no over-limit or foreign transaction fees.

CEO Anthony Noto emphasized SoFi's commitment to serving members' spending and borrowing needs, aiming to help people achieve their ambitions and get their money right.

Positive

• Launch of two new credit cards expanding SoFi's product portfolio
• SoFi Everyday Cash Rewards Card offers up to 3% unlimited cash back on dining
• SoFi Essential Card designed to help build or improve credit scores
• No annual, over-limit, or foreign transaction fees on SoFi Essential Card

Negative

• None.

Insights

Financial Analyst

SoFi's launch of two new credit cards, the SoFi Everyday Cash Rewards and SoFi Essential, represents a strategic expansion of their product portfolio. This move aims to capture a larger share of the consumer credit market and diversify revenue streams. The Everyday Cash Rewards card, with its tiered cashback structure (3% on dining, 2% on groceries, 1% on other purchases), is competitive in the rewards credit card space. It's designed to encourage frequent use and potentially increase transaction volume and interchange fees for SoFi. The Essential card, targeting those building credit, could help SoFi tap into a growing market segment. While this expansion is positive for customer acquisition and retention, the impact on SoFi's bottom line will depend on factors like adoption rates, customer spending patterns and the cost of rewards programs. Investors should monitor how these new offerings contribute to SoFi's overall financial services ecosystem and their ability to cross-sell other products.

Market Research Analyst

The introduction of these new credit cards demonstrates SoFi's responsiveness to market demands and member feedback. The Everyday Cash Rewards card aligns with current consumer trends, particularly the focus on dining and grocery rewards, which have become increasingly important categories during and post-pandemic. This positioning could help SoFi compete more effectively against established players in the credit card market. The Essential card addresses the growing need for accessible credit-building tools, potentially attracting a younger or credit-challenged demographic. This move also supports SoFi's "one-stop shop" strategy, enhancing its ability to serve members across various financial needs. The success of these cards will likely depend on SoFi's marketing efforts, the seamless integration with their existing platform and how well they can differentiate themselves in a crowded market. Investors should watch for metrics on card adoption, usage rates and any impact on customer acquisition costs and lifetime value.

SAN FRANCISCO--(BUSINESS WIRE)-- SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric, one-stop shop for digital financial services that helps members borrow, save, spend, invest, and protect their money, is expanding its credit card portfolio with the launch of the SoFi Everyday Cash Rewards Credit Card and the SoFi Essential Credit Card ⁽¹⁾. These new offerings, developed with extensive feedback from SoFi members and others, build on the company’s commitment to helping people achieve their ambitions and serving their diverse credit needs.

The SoFi Everyday Cash Rewards Credit Card is designed for those who prioritize earning rewards on their daily spending, whether it’s dining out, ordering in, or shopping for groceries. Key features include: ⁽²⁾

• 3% unlimited cash back on dining out at restaurants and dining in, including food delivery services like DoorDash, UberEats and Grubhub.
• 2% unlimited cash back on grocery store and convenience store purchases, both in-store and online.
• 1% unlimited cash back on all other eligible purchases.

The SoFi Essential Credit Card offers a reliable credit line for those focused on building or improving their credit scores – part of SoFi’s commitment to helping people get their money right. This card is designed with no surprise fees and no annual ⁽³⁾, over-limit, or foreign transaction fees.

“We want to be there for the biggest moments in our members’ lives and everything in between,” said Anthony Noto, CEO of SoFi. “Expanding SoFi’s credit card offering enables us to better serve more people’s spending and borrowing needs, whether it’s helping them earn rewards for everyday purchases or building their credit. We’re excited to continue building out our credit card products and deepening our relationships with our members.”

For more details on the SoFi credit cards, please visit: https://www.sofi.com/blog/sofi-everyday-cash-rewards-sofi-essential/

About SoFi

SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for digital financial services on a mission to help people achieve financial independence to realize their ambitions. The company’s full suite of financial products and services helps its nearly 8.8 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.

SoFi innovates across three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Financial Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack servicing 150 million users across the world. SoFi Bank, N.A., an affiliate of SoFi, is a nationally chartered bank, regulated by the OCC and FDIC and SoFi is a bank holding company regulated by the Federal Reserve. The company is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams. For more information, visit SoFi.com or download our iOS and Android apps.

^Disclosures:

1. SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circle's design is a trademark of Mastercard International Incorporated.
2. Members can earn cash back rewards points for every dollar spent on purchases, including 3% cash back rewards on eligible dining purchases, 2% cash back rewards on eligible grocery purchases, and 1% cash back rewards on all other eligible purchases. No rewards points will be earned with respect to reversed transactions, returned purchases, or other similar transactions. When you elect to redeem rewards points toward active SoFi accounts, including but not limited to, your SoFi Checking or Savings account, SoFi Money® account, SoFi Active Invest account, SoFi Credit Card account, SoFi Personal Loan, Private Student Loan, Student Loan Refinance, or toward SoFi Travel purchases, your rewards points will redeem at a rate of 1 cent per every point. For more details, please visit www.sofi.com/card/rewards?cardType=h. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A.
3. See Pricing, Terms & Conditions at www.sofi.com/card/terms?cardType=a

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241009808125/en/

Rosa Alfonso-McGoldrick

SoFI Corporate Communications

sofi-pr@sofi.org

Source: SoFi Technologies

FAQ

What are the new credit cards launched by SoFi (SOFI)?

SoFi (SOFI) has launched two new credit cards: the SoFi Everyday Cash Rewards Credit Card and the SoFi Essential Credit Card.

What are the cash back rewards for the SoFi Everyday Cash Rewards Credit Card?

The SoFi Everyday Cash Rewards Credit Card offers 3% unlimited cash back on dining, 2% on grocery and convenience store purchases, and 1% on all other eligible purchases.

What is the main feature of the SoFi Essential Credit Card?

The SoFi Essential Credit Card is designed for building or improving credit scores, with no surprise fees, no annual fee, and no over-limit or foreign transaction fees.

Why did SoFi (SOFI) launch these new credit cards?

SoFi (SOFI) launched these new credit cards to better serve their members' diverse credit needs, help them earn rewards on everyday purchases, and assist in building credit.