Small Business News
Alibaba Launches Co-Branded Business Credit Card with Cardless
A mega-popular online retail site is introducing a co-branded business rewards credit card to the U.S. market.
About the card:
Alibaba and Cardless have unveiled the upcoming Alibaba.com Business Edge Credit Card. Currently, a waitlist for the card is available, with applications expected to open later this year.
With the Alibaba.com Business Edge card, businesses can earn 3% cashback on purchases made on Alibaba. Alternatively, they can opt for 60-day interest-free payment terms. However, both of these options are capped at a total of $40,000 in spending per year. After that cap is reached, all other Alibaba purchases will earn 1%.
Outside of the Alibaba site, the Business Edge card will also earn increased rewards on select business expenses. This includes 2% back on dining, 2% on business/office services, and 2% on advertising/marketing services. All other purchases made with the card will earn 1% back.
In addition to these rewards, the Alibaba Business Edge card will feature other benefits for business cardholders. For example, the card’s site states that customers will receive $100 in Alibaba coupons per year across three offers. Cardholders will also receive a $20 bi-monthly (once every two months) discount on orders shipped via Alibaba.com Logistics — meaning that they can save up to $120 per year with this perk. Lastly, as cardholders, business owners will have up to 90 days to apply for refunds if there are any issues with their Alibaba order. This is an increase over the regular 30-day policy.
When the Alibaba.com Business Edge Credit Card launches, it will carry a $199 annual fee. Cardless has also revealed a welcome bonus for the card, allowing new cardholders to earn a $100 bonus after spending $3,000 on the card within their first 90 days.
What they’re saying:
Announcing the new offering, Alibaba’s head of marketing in North America Rah Mahtani said, “The Alibaba.com Business Edge Credit Card is the latest way we are adding value for businesses leveraging our platform, especially small and medium-sized enterprises (SMEs). Partnering with Mastercard has allowed us to bring together our insights into the needs of SMEs and deliver a product that can help them to grow their business and more easily manage their finances.”
Meanwhile, Cardless president and co-founder Michael Spelfogel stated, “We’re excited to partner with Alibaba.com to launch the Alibaba.com Business Edge Credit Card. This card marks the start of our expansion into innovative financial solutions for small business owners, and will empower U.S. businesses by simplifying sourcing and offering valuable rewards.”
My thoughts:
I know that Alibaba is a huge retail platform… but that’s about all I know. Therefore, it’s hard to say whether this card could be a good deal for small businesses. That said, it really just comes down to math as, if businesses do spend $40,000 on the site per year, then the $1,200 cashback clearly exceeds the $199 annual fee — not to mention the other benefits of the card. So, if that describes your small business, then perhaps it’s worth adding your name to the Alibaba.com Business Edge Credit Card waitlist.
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