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Paceline introduces cash-back credit card that doubles your rewards for working out
The Paceline credit card is the first ever to incentivize working out. Here's what you need to know.
Paceline, an app that rewards you for your physical activity, announced its Paceline Visa Signature Card is now open to applications on Tuesday as the first cash-back credit card that 'connects your health and your finances through its unified wellness platform.'
According to Paceline CEO and founder Joel Lieginger, this unique card does not just reward you for more spending but rather incentivizes you to pursue better health and finances together.
And so far, the app has proven to be popular as over 500,000 users on the Paceline app have logged over 2 billion workout minutes and redeemed $4 million in rewards. And now with the Paceline Visa Signature card, you can earn up to 5% cash back on select purchases that's redeemable daily in the Paceline app.
Here's what you need to know about the new card.
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Paceline Visa Signature credit card announcement
A famous ancient Greek physician named Herophilus once said, "When health is absent ... wealth becomes useless." And there is evidence that suggests the two crossover, including this 2015 study from the Urban Institute where it states, "the greater one's income, the lower one's likelihood of disease and premature death." And increasing physical and financial wellness is what the Paceline credit card is solving for.
Lieginger told Select in an interview only 18% of people exercise the recommended three times per week, and Paceline aims to change that. And by getting your heart pumping, you can also bolster the cash back you earn on your purchases.
Paceline credit card details
Paceline Visa Signature Card
5% unlimited cash back on eligible health and wellness spend which includes gym memberships, fitness equipment and apparel and grocery stores, 3% unlimited cash back on all other eligible purchases. Earnings are reduced to 2.5% and 1.5% if users don't hit weekly streak.
15.99 to 29.99%
Balance transfer fee
Foreign transaction fees
3% of each purchase.
The Paceline credit card gives cardholders up to:
- 5% unlimited cash back on eligible health and wellness spend which includes gym memberships, fitness classes, fitness equipment and apparel, grocery stores, drug stores and pharmacies
- 3% unlimited cash back on all other eligible purchases
These cash back rates are for cardholders who achieve their weekly streak of exercise on the Paceline app. A streak is considered 150 minutes of elevated heart activity in a week which is tracked through a smartwatch that you'll wear, such as an Apple Watch.
However, if you fall short one week by not hitting your weekly 150 minutes, the card still offers a solid cash-back rate of 2.5% on all health and wellness and grocery purchases and 1.5% on all other qualifying purchases.
And as you earn your cash back, it settles daily in your app. Once you hit your 150 minutes of elevated heart activity, your cash-back rate doubles immediately (from 2.5% and 1.5%, to 5% and 3%, respectively).
And while the card may seem like its designed for people who avidly work out or visit the gym, your elevated heart rate minutes can also be achieved somewhat passively when wearing a smart watch, through simple activities like playing with kids or walking in the grocery store.
But if you don't currently own a smart watch the card actually can help you pay for one by earning back the cost of an Apple Watch Series 7 (up to $429) over the course of the first year of card membership. Cardholders who hit their weekly streak of 150 minutes of physical activity and keep their account in good standing will receive weekly credits towards the cost of an Apple Watch. And all of this can be tracked in the Paceline app, which has a 4.9 star rating in the iOS App Store.
Lastly, the card comes with Visa Signature benefits, which includes perks such as:
- Roadside dispatch
- Travel assistance services
- Emergency cash disbursement
The card charges a modest $60 annual fee.
Why you should consider a cash-back credit card
While there tends to be ample attention on travel rewards credit cards, cash-back credit cards can give you outstand returns on your spending without any fuss.
Select calculated how much in cash back the average American could earn on their yearly spending. We worked with the location intelligence firm Esri, who provided us with a sample annual spending budget of $22,126.
If you were to put all that spending on the Paceline Visa Signature credit card and hit your weekly streak to earn 3% cash back, that would give you $664 in cash back over the course of a year. This doesn't even include cash back earned at a 5% rate at grocery stores and at pharmacies. This makes the card one of the best credit card for groceries, as long as you hit your weekly streaks.
And you'd also earn a 'free' Apple Watch along the way, all for a modest $60 annual fee.
Additionally, during a time where inflation is at a 40-year high, saving money on your daily expenses with a cash-back card can help you combat rising prices. Since the Paceline Visa Signature Card awards 5% cash back at grocery stores when you hit your weekly streak you'll be able to quickly save on your grocery costs.
Lastly, travel rewards are consistently at risk of devaluation. This is where the airlines and hotels decide to charge more in points and miles for the same product, and this can be done overnight without any notice to consumers. This is why holding points and miles over the long-term can be a detrimental strategy. Cash back offers more flexibility and can even be invested for the future.
The Paceline Visa Signature Credit Card is a first-of-its-kind offering for consumers who want to prioritize their physical and financial wellbeing. So if you're someone who is already achieving 150 minutes of exercise, this cash back card could be a great addition to your wallet, especially if you spend heavily on groceries and fitness. But if you're wanting to find that extra push to get in the gym or get a morning walk in your routine, extra cash back could do the trick for you.
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Information about the Paceline Visa Signature Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.