Xbox players are the credit-card industry’s next big thing
Matt Hertzog spends 50 hours a week playing Xbox. That makes the 37-year-old part of a key target market for big financial firms. Banks are seeking out millennial and Gen Z customers in the $57 billion-a-year videogame industry.
Leading the charge is Barclays, a big player in U.S. credit cards, which wants to do with gamers what card companies long ago did with airline passengers: boost loyalty, and spending, by offering customers rewards when they charge their card. JPMorgan Chase, the nation’s biggest bank by assets and top credit-card provider, has invested in startup Tilia, which provides a platform for players to make in-game purchases.
Meanwhile, financial-technology companies and banks are also running advertisements during games, targeting millennials. Last fall, Barclays introduced an Xbox Mastercard, in collaboration with the game console’s parent company, Microsoft. Cards tied to Sony’s rival PlayStation platform have been available for years, first via Capital One and more recently through Bread Financial’s Comenity Bank.
Hertzog, a New Jersey program manager for a healthcare company, was an early adopter of the Xbox card. Six months ago, he signed up for a card with a $10,000 limit and a 19% annualized interest rate. He instantly got $50 in points for buying games.
He said incentives like these have led him to spend more, including on in-game purchases such as virtual currencies. Recently, he charged $200 to buy Sega’s Dreamcast, a retro console, and two games. “The rewards you get with the Xbox card are very lucrative for me," said Hertzog.
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