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      Chase Lets Cardholders Invest Reward Points With JPMorgan

      Chase has announced an investment-focused expansion of its Ultimate Rewards card program.

      “Invest Your Points,” announced Wednesday (Sept. 16), offers eligible cardmembers a new way to redeem points for cash to invest in an eligible J.P. Morgan Wealth Management account.

      According to a news release, customers can redeem their points for cash to invest in an eligible J.P. Morgan Self-Directed Investing account or work with an advisor at the bank to invest in a taxable investment account.

      “Cardmembers already have a lot of ways to use Ultimate Rewards, from travel to cash back, and every new option makes the program even more valuable,” said Chris Reagan, Chase’s president of branded cards. “Now, they can also put their rewards toward investing and their financial goals, in one connected digital experience.”

      Upon redeeming points for cash, customers can pick how they want to invest “based on their own goals and risk tolerance,” the release added. Cards in the Ultimate Rewards program include those in the Chase Freedom, Chase Ink and Chase Sapphire card portfolios. Cardholders can also redeem Ultimate Rewards points on things like travel, cash back, statement credits, and gift cards.

      “Our goal is to make investing more accessible, more intuitive and more connected to the way clients already handle their finances,” said Paul Vienick, head of online investing at J.P. Morgan Wealth Management. “Giving clients the ability to invest with Ultimate Rewards points helps them manage their financial lives – and their investments – all in one place.”

      Recent research by PYMNTS Intelligence has shown the value cardholders put on rewards offerings, with 38% of consumers who switched cards doing so for better rewards.

      That’s according to “The Switching Trigger: How Issuers Can Stop Their Credit Cards From Losing Top-of-Wallet Status,” created in collaboration with Elan Credit Card.

      “Better rewards and higher credit limits draw cardholders away, and the issuers they’re leaving rarely put up a good fight,” that report said.

      The research found that 46% of cardholders who switched saw no effort by their old issuer to keep them on board. Consumers are also less likely to switch credit cards because of negative feelings about their previous primary card, with just 28% saying their rewards rate had become less valuable. The same percentage said their credit limit was too low or had been reduced.


      Source: PYMNTS.com
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