Is Citibank Re-Entering the Ultra-Premium Credit Card Market?

There has been a lot of chatter lately about Citibank coming out with a new ultra premium credit card. Citi used to be one of the juggernaut in the premium credit card market with Citi Prestige which they discontinued for new applicants back in 2021. Leaving Chase Sapphire Reserve and AMEX Platinum the only two players in the market.

In 2021, post pandemic however, the segment of ultra-premium travel cards seem to be booming with extremely strong rebound in travel and spending. The leisure travelers also seem to be paying for luxury experiences which used to be filled with corporate travelers as the corporate travel demand still below 2019 levels since the pandemic. Sensing this, Capital One entered the market with Capital One Venture X, their premium credit card offering. This card seem to be appealing masses due to it no nonsense credits and easy to get value out of the card.

Citi seem to have been observing the field and may have plans for bringing back their Ultra-Premium card offering. There have been speculations on reddit and in the Credit Card forums last year about Citi filing trademarks for new credit cards. Doctor of Credit and Miles To Memories have reported those speculations.

New information has come to light which may fuel this speculations and may suggest that Citi is actually working on or considering an Elite product. Citi has floated a project to provide a high value Concierge service ideas, rivaling that of American Express Concierge.

This paid challenge of providing Citi with ideas on elevating their concierge service certainly points to Citi actively working on or considering a new line of credit cards or new Ultra Premium credit card.

Time will tell if it’s a project Citi is exploring and abandoning or instead will come out with their premium credit card product.

What this could mean?

High-value spenders, who are currently active on Amex Platinum and Visa Infinite cards, are constantly on the lookout for exclusive benefits and perks that come with their premium cards. With the potential partnership between Mastercard and Citi, this segment could be attracted to an even more competitive offering that caters to their needs and preferences.

Mastercard's advanced technology, combined with Citi's global presence and expertise in retail banking, could bring together a range of innovative features that enhance the overall value proposition. For instance, the partnership could provide exclusive access to luxury experiences, such as VIP concert tickets or high-end dining experiences, that cannot be found elsewhere. Moreover, the partnership could create a seamless and convenient user experience for high-value spenders, with features such as digital wallets, mobile payments, and easy-to-use rewards redemption platforms.

The partnership could also focus on enhancing travel-related benefits, which are a key attraction for high-value spenders. For example, access to exclusive airport lounges, personal concierge services, and travel insurance packages could be bundled into the premium card offering. Additionally, the partnership could leverage Citi's global network to offer exclusive deals and discounts on travel-related expenses such as airfare, hotels, and rental cars.

The potential partnership could potentially provide a formidable challenge to existing premium card offerings, such as Amex Platinum and Visa Infinite affiliated cards, by offering a more comprehensive and tailored value proposition to high-value spenders. The partnership could also provide a valuable opportunity for Mastercard and Citi to grow their market share in the premium card segment, which has seen significant growth in recent years. Overall, the potential partnership between Mastercard and Citi could offer high-value spenders an even more compelling alternative, with a range of innovative features and exclusive benefits that enhance their overall experience.

What are your thoughts? Any further speculation that you have come across from Citi bringing ultra-premium credit card back? Post it in the comments.