South American mega-airline LATAM will be launching co- branded credit cards in the United States with a new issuer in the space. We now know the details of these cards, and they are also open for applications.
LATAM and Cardless have formed a partnership to create, distribute, and market new credit cards in the United States. Two co- branded credit cards, including a no annual fee card and a premium card, are being introduced.
LATAM’s two new credit cards from Cardless
There is a Mastercard for LATAM Airlines.
Has no annual fee
Has no foreign transaction fees
Offers a sign-up bonus of 15,000 miles after spending $1,000 within the first three months
Offers 3x miles on LATAM purchases, 2x miles on restaurants and ground transportation, and 1x miles on everything else
Offers qualifying points toward LATAM elite status at the rate of 10% of the miles earned from card purchases (which doesn’t include miles from sign-up bonuses or promotional miles)
The Mastercard is from LATAM Airlines.
Has a $99 annual fee
Has no foreign transaction fees
Offers a sign-up bonus of 40,000 miles after spending $2,500 within the first three months
Offers 4x miles on LATAM purchases, 3x miles on restaurants and ground transportation, and 1x miles on everything else
Offers qualifying points toward LATAM elite status at the rate of 20% of the miles earned from card purchases (which doesn’t include miles from sign-up bonuses or promotional miles)
Offers two LATAM lounge passes per year
Offers three upgrade coupons per year (though those with LATAM Pass Gold Plus status or above don’t receive extra coupons)
Cardless is trying to change the co- brand credit card industry in the US. The people behind Cardless are big nerds. Cardless is unique in that it can launch a co-brand credit card in a month, and can also make these agreements economically viable even if the portfolio doesn't see billions of dollars of spending annually.
LATAM is Cardless' first airline partner.
Cardless & LATAM have launched US credit cards
My take on LATAM’s new credit cards
It is great to see Cardless getting into this space, given how innovative the company is.
I was skeptical of how appealing these cards would be.
LATAM has left the oneworld alliance, and instead now just partners with Delta (without belonging to SkyTeam); this means there are limited opportunities for redeeming rewards on partners
LATAM’s frequent flyer program, LATAM Pass, isn’t particularly lucrative, though it’s probably still the best option for booking award flights on LATAM
This could be useful for those specifically loyal to LATAM or who fly to the region regularly
What do I think about the details of the cards? The cards are pretty much what I would have expected.
It’s cool that spending money on the cards can help you qualify for elite status, meaning that 10-20% of the miles you earn from spending will help you earn status; this follows the trend of airlines making it increasingly easy to earn status with credit card spending (like what American is doing with Loyalty Points)
It’s cool that the premium card offers two lounge passes plus three upgrade coupons, which could be a reason to pick up the card
For my own spending profile and rewards preferences, these probably aren't cards that I'll be applying for.
The premium card offers lounge access passes
Bottom line
Cardless has a partnership with LATAM. There are two new cards, one with no annual fee and the other with a fee. The cards have some unique benefits and are competitive, and I am impressed with the value proposition for those who are loyal to the LATAM region.
What do you think about the new cards from Cardless?
