Finance Giant Citi Introduces Elite Credit Card to Challenger Amex and Chase Competition
Citi has entered the premium credit card market with its latest offering, the Strata Elite card. The card, introduced in mid-2025, targets affluent consumers with a $595 annual fee, making it a cost-effective alternative to competitors like the Amex Platinum ($695) and Chase Sapphire Reserve ($795).
The Strata Elite card offers substantial value and exclusive lifestyle perks. It provides up to 12 points per dollar on select travel and dining, a $300 hotel credit, a $200 “Splurge” credit redeemable at retailers, four American Airlines Admirals Club lounge passes, chauffeur credits, and waived foreign transaction fees, among other benefits.
This launch is part of Citi’s strategy to expand premium offerings for affluent clients and to differentiate itself amid a competitive "perk war" in the premium card space. The premium card market is seeing increased focus on the affluent customer base by financial institutions, with the market shift reflecting a broader trend of shifting promotional efforts toward higher-income consumers.
In fact, the premium credit card market is experiencing growing demand, with a CAGR of approximately 18.86% from 2025 to 2033. This growth is driven by a desire for exclusive financial products and enhanced reward experiences. While overall new credit card openings dropped by 5% year-over-year in the second quarter of 2025, the emphasis is clearly on premium card products aimed at higher-income consumers.
However, the real issue lies behind the scenes. Individuals with high credit scores have become a sought-after commodity due to economic pressures affecting everyday consumers. Merchant-funded rewards are a significant factor in enhancing the value proposition of these cards.
Brian Riley, Director of Credit and Co-Head of Payments at Javelin Strategy & Research, suggests considering what one wants from a premium credit card before investing. To maximize return, one might need to use certain benefits like the Uber credit and transfer certain subscriptions on the Amex Platinum card, while the Strata Elite card offers 6x points on restaurant purchases on Friday and Saturday, and a $200 annual splurge credit usable at select brands.
It's important to note that most travel perks on the Strata Elite card are only available when bookings are made through Citi's travel portal. The market's capacity to accommodate another premium credit card is uncertain. If one wants all three cards (Strata Elite, Chase's Sapphire Reserve, and Amex's Platinum card), the combined annual fee will be $2,000. Second-year benefits should be closely monitored, as they may significantly impact one's position in 2026.
Riley highlights subtle and not-so-subtle industry shifts in rewards. The Strata Elite card's launch exemplifies this trend, with financial institutions increasingly focusing on affluent customers by introducing new, highly competitive premium credit cards with enhanced perks and benefits. For more details on these industry shifts, you can read this article.
In conclusion, the premium credit card market is evolving, with financial institutions like Citi introducing new cards to attract affluent customers. The Strata Elite card offers a competitive value proposition, but it's essential to consider one's needs and the associated costs before investing.
- The premium credit card market is witnessing an increased focus from financial institutions like Citi, as they attempt to attract affluent customers with new offerings, such as the Strata Elite card, which boasts a $300 hotel credit, chauffeur credits, and waived foreign transaction fees, amongst other benefits.
- In the competitive business landscape of the premium credit card market, technology is playing a crucial role in enhancing the value proposition of cards, with features like merchant-funded rewards and loyalty programs designed to appeal to the affluent customer base.
