Citi launches high-end credit card to challenge Amex, J.P. Morgan

Citigroup (NYSE:C) has unveiled its new premium credit card, the Strata Elite, entering the competitive luxury card market dominated by American Express (NYSE:AXP) and J.P. Morgan Chase (NYSE:JPM).

With a $595 annual fee, the card is geared toward big spenders who prioritize travel and dining. Citi claims the benefits could add up to nearly $1,500 annually when fully utilized. Customers earn the highest point rewards when booking hotels, car rentals, and experiences through Citi’s travel portal, as well as for dining at popular weekend times.

The card includes travel perks tied to American Airlines (NASDAQ:AAL), offering four annual lounge passes and the option to convert Citi “ThankYou Points” into AAdvantage miles. This follows a December deal making Citi the exclusive issuer of American Airlines credit cards.

The Strata Elite enters a crowded space that also includes Capital One (NYSE:COF) and other banks targeting affluent consumers, those who are typically willing to pay high fees for top-tier rewards.

Competition has always driven innovation, Pam Habner, head of U.S. branded cards and lending at Citi (NYSE:C), who helped launch J.P. Morgan’s (NYSE:JPM) Sapphire Reserve card in 2016, said to Bloomberg News.

Compared to the Sapphire Reserve, which is increasing its annual fee to $795, the Strata Elite is slightly more affordable. It also charges $75 for each additional user.

The card debuts as the first in Mastercard’s (NYSE:MA) new World Legend tier, unlocking extra perks like early access to events and expedited airport screening.

Designed with travelers in mind, Strata Elite also provides credits for services like Blacklane chauffeur rides and programs like Global Entry and TSA PreCheck to help speed through airport lines.