The annual fee on the premium credit card is scheduled to jump from $450 to $550 effective January 12.
JPMorgan Chase has decided to increase the yearly fee on its hugely popular Sapphire Reserve card, and to add new perks with partners such as DoorDash and Lyft. Existing customers will pay the upgraded fee upon renewal of their cards, starting in April.
Sapphire Reserve is one of the most expensive credit cards on the market, on a par with American Express’s Platinum card. The two companies have been locked in a fierce battle for premium Millennial customers since 2016, when Chase launched Sapphire Reserve.
In 2001, American Express jacked up the fee on its Platinum card to $550, while adding benefits such as a $200 annual Uber credit to its substantial collection of benefits.
JPMorgan has adopted the strategy of targeting services that are growing in popularity.
This week, Chase announced plans to add $120 in statement credits for DoorDash food-delivery service. It’s also working to add the perk of one year of lower DoorDash fees.
The bank will also partner with Lyft to offer Sapphire Reserve members a free year of Lyft Pink, a new monthly membership program from the ride-sharing app, as well as 10 points per dollar spent with the company.
Chase’s partner companies make concessions to get in on the deal, but make significant profits in return. According to Chase, customers have more than double their spending on food delivery services in the past year.
Most Sapphire Reserve customers use ride-hailing apps weekly.
At its core, Sapphire Reserve is a premium travel card with a versatile rewards program and elite travel perks. The card offers bonus rewards for travel and dining, with redemption options that allow cardholders to maximise the value of their rewards.
As we went to press, there were unconfirmed reports that Chase has postponed the fee upgrade to January 13 (instead of January 12, as previously announced).