The news: AT&T and Citi expanded the rewards for the Point Plus Card, per press release.

Cardholders can anticipate monthly AT&T wireless and internet bill discounts, 2X points on AT&T products and services, and no foreign transaction fees. 

Existing cash-back perks on groceries, gas, and EV charging remain unchanged.

Why this matters: Consumers want more value out of their products and services as cost-of-living pressures intensify. 

Updating the Points Plus card helps AT&T and Citi compete with the Verizon Visa Card (issued by Synchrony), which more generously rewards members on groceries, gas & EV charging, and restaurants. Beating Verizon’s perks on wireless and internet helps AT&T’s positioning, especially for cardholders who use their cards exclusively for billing and not as a top-of-wallet card.

Zooming out: Legacy wireless providers have to stay alert for fintech advances into phone lines. Buy now, pay late (BNPL) providers like Klarna, Zip, and Sezzle have all launched mobile plans at prices as low as $29.99 a month, with the hope of snagging new alternative credit loyalists lured by affordable phone plans.

Implications for payment providers: Delivering on value can lock in loyalty from consumers searching for deals. 

As budgets tighten, payment providers that can deliver on financing that meets consumer needs, such as installments and interest rate holidays, while also rewarding members on everyday essentials can become a vital tool for shoppers.