Over the past several months, Southwest Airlines has been in the midst of a major transformation as the airline seeks to boost profits and compete with legacy carriers like Delta, American, and United. Now, it seems like the airline is moving forward with a rather unique change as it continues that mission.
Rewards credit cards are very common throughout the airline industry, with one legislator even going as far as to “basically credit card companies that own some planes.” Southwest, however, is taking a very different approach.
Airlines Use Rewards Credit Cards
Rewards credit cards are exceedingly common in the airline industry, and Southwest Airlines is no exception. The airline currently offers several rewards credit cards, recently revamping its rewards credit card lineup.
More than 31 million Americans currently hold airline travel reward cards, and 57 percent of all frequent flier miles and points issued in 2023 were generated by airline credit card use. Nearly 16 million domestic air trips were awarded from points earned through the use of an airline-branded credit card in 2023.
Southwest Debuts Reward Debit Card
While rewards credit cards are common in the industry, Southwest is debuting a different way for its customers to earn travel points: a rewards debit card.
On Tuesday, Southwest Airlines officially announced the debut of its rewards debit card, which will combine “the convenience of debit payments with the benefits of Rapid Rewards.”
“At Southwest Airlines, we are continually exploring new ways for our Customers to experience the benefits of our Rapid Rewards program,” said Tony Roach, EVP Chief Customer and Brand Officer at Southwest Airlines, in a statement on Tuesday. “With more than 90% of Americans using debit cards, expanding our award-winning Rapid Rewards loyalty program to include a debit card was a natural next step.2 Whether it’s a college student looking to book a flight to watch their favorite team, a parent setting up an account for a recent graduate, or a cash-savvy Customer looking for another way to earn rewards, the Rapid Rewards Debit Card offers unlimited options to turn everyday spending into that next Southwest flight.”
Customers can sign up today at southwestdebit.com.
Benefits of the New Debit Card
- Welcome bonus: Enjoy a 2,500-point welcome bonus with two recurring deposits and $100 spent in the first 90 days.
- Unlimited points on everyday spending: Earn 1 point per $2 spent on everyday purchases, plus 1 point per $1 spent on Southwest Airlines purchases, dining, and subscriptions, including internet, phone, streaming services, and utilities.
- Companion Pass bonus: Receive a 7,500 Companion Pass bonus each year. All points earned with the debit card count toward Companion Pass, including the welcome bonus offer.
- Annual perks and travel credit: Receive up to 7,500 bonus points on the Cardmember anniversary, an annual 20% off promotion code, and an annual $35 Southwest credit.
- Simple signup and waived fees: No credit check is required to sign up, there are no fees to withdraw from ATMs within the Cirrus network, and the monthly fee is waived.
