Point is the new startup venture, based in the US which claims to provide a “rewards system” given by credit card companies. The new startup bank is currently onboarding new customers via “invite-only”.
Credit card companies like American Express, want you to reach a certain level of spending to unlock the sign-up bonus. Also, there is a hassle of clearing the due before the due date. Point aims to solve this problem by allowing you to manage your money more efficiently. You don’t need to worry about missing the due date or incurring a credit card debt, which may affect your credit score.
Point gives you a debit card with some level of insurance as it’s a MasterCard World Debit card. It also gives you some trip cancellation insurance, rental car insurance, purchase insurance, etc. as a joining bonus.
“I started Point as a solution about everything that is frustrating and complicated about credit cards. The incentives between credit card companies and cardholders are misaligned,” Patrick Mrozowski, Point co-founder and CEO, told in an interview.
Point also offers rewards like credit card companies for each spend. On subscriptions such as Netflix and Spotify you get 5X points, while on food, groceries, and rides, you get 3X points, while 1X reward points on every other spend. Each point can later be redeemed, as 1 point equals $0.01. Also, Point will create a customized feed with offers, deals, and discounts based upon your usage pattern.
Point charges you $6.99 per month or $60 per year to join Point. The good part is, it doesn’t charge any foreign transaction fees. It is really good for the people who carry out a lot of transactions or use their cards internationally.