Citi Lazada Credit Card Review — Is It Only Good For Lazada Shoppers?
From the unexpectedly popular UOB KrisFlyer card to the newly introduced GrabPay credit card, quite a few new credit cards were launched this year. Here’s one more to add to the list: the Citi Lazada card.
As you can probably guess, this card targets those who shop on Lazada. That’s a lot of people: according to a report by iPrice*, Lazada was the top e-commerce site in Singapore with close to 8 million monthly web visits in the third quarter of 2019.
In a nutshell, the Citi Lazada card offers a whopping 12X rewards ($1 = 4.8 miles) on Lazada purchases until Feb 2020 (10X thereafter), and 5X ($1 = 2 miles) rewards for other key spending categories like dining, travel, entertainment and transport.
Is the Citi Lazada card really a godsend for Laz-addicts, or did they literally “play it up”? Here’s our take on the card.
Citi Lazada credit card overview
First, let’s look at the card benefits like bonus reward points (or air miles):
|Spending category||Citi Lazada card benefits|
|Lazada (before Feb 2020; excludes RedMart)||12X rewards||4.8 mpd|
|Lazada (Mar 2020 onwards; excludes RedMart)||10X rewards||4 mpd|
|Dining (fast food, restaurants, bars and clubs, caterers)||5X rewards||2 mpd|
|Travel (flights, hotels, cruises, car rental)||5X rewards||2 mpd|
|Entertainment (movie tickets, Netflix, Spotify)||5X rewards||2 mpd|
|Transport (bus, train, taxi, private hire rides)||5X rewards||2 mpd|
|Everything else||1X rewards||0.4 mpd|
Other Citi Lazada card benefits
- Free 1-year LiveUp membership worth $59.90 for applications before 31 Dec 2020
- Shipping rebate for Lazada orders over $50, excluding RedMart. Capped at 4X per calendar month.
- Complimentary travel insurance when you charge your flight tickets to the card.
Citi Lazada card review — for Lazada shopping
- Up to 12X rewards / 4.8 mpd on Lazada shopping
- Free 1-year LiveUp membership
- Shipping fee rebates
- Bonus earn rate excludes RedMart orders (1X rewards / 0.4 mpd)
- 12X rewards / 4.8 mpd earn rate is temporary (until Feb 2020 only)
As mentioned, the more attractive perks are primarily for Lazada expenses. From now until Feb 2020, cardholders will earn 12X rewards. After that (Mar 2020 onwards), it will revert to the regular accrual rate of 10X rewards.
If you are planning to make big-ticket Lazada purchases in the coming months (before Feb 2020), you could really benefit from the 12X rewards. Say you’re renovating and intend to shop for furniture and electronics online, you can consider this card to shop for what you need via Lazada.
Aside from the bonus rewards, the Citi Lazada card also comes with free 1-year LiveUp membership for those who get the card before the end of next year. You will also enjoy rebates on shipping fees (usually $1.49 to $1.99).
Do note, however, that your earnings are capped at 10,000 reward points per month. You should space it out so that you don’t spend more than $833 monthly (assuming 12X rewards, and that you shop exclusively on Lazada).
Another huge caveat is that this 12X/10X earn rate does not apply to RedMart orders. This is quite disappointing, and I’d imagine it to be a deal breaker for many.
In fact, RedMart orders don’t even earn the second tier of 5X rewards. It falls under “everything else” and only earns 1X rewards, which is very low.
Citi Lazada card review — for general spending
- 5X rewards / 2 mpd for public transport expenses incurred via SimplyGo
- 5X rewards / 2 mpd for travel
- 5X rewards / 2 mpd for dining includes bars and clubs too
- Free travel insurance (must charge flight tickets to the card)
- Mediocre earn rate of 5X rewards / 2 mpd on key spending categories
- Shared rewards cap of 10,000 points
The Lazada perks may sound impressive, but those don’t mean much unless you shop heavily on that one platform.
For non-Lazada benefits, it’s a mediocre 5X rewards (or 2 mpd) earn rate for dining, travel, entertainment and transport (commute) and 1X rewards (0.4 mpd) for everything else.
If you can accept the earn rate, there are some noteworthy features of the card:
First of all, public transport fares incurred via SimplyGo are eligible for 5X rewards / 4 mpd under the “commute” category (MCC 4111 — local/suburban commuter passenger transportation — railroads, ferries, local water transportation). For other Citibank cards, SimplyGo transactions do not earn any rewards.
Next, the “dining” spending category actually refers to what some other banks call “wine and dine”. That’s because it includes not just the usual eateries, restaurants and caterers, but drinking places like bars, lounges and night clubs as well.
Lastly, it’s (sort of) not bad for travel bookings as well (5X rewards / 4 mpd). If you charge your flight tickets to your card, you will also receive complimentary (albeit very basic) travel insurance coverage.
Citi Lazada card review — as an air miles card
If you’re a miles chaser, then 12X rewards / 4.8 mpd for Lazada is pretty impressive. Sadly, it’s for a limited, promotional period only, and the usual 10X rewards (or 4 mpd) is very “meh”.
There are many other cards that offer the same 10X on broader spending categories (like online shopping in general), making it much easier to chock up points/miles.
Another note: like all Citibank cards, the rewards earned from the Citi Lazada card must be redeemed on their own, and cannot be pooled together with other cards.
For those accumulating miles from multiple Citibank cards, this could mean paying more conversion fees.
Here’s an example: If you have points under both your Citi Rewards card and your Citi Lazada card accounts, you can’t pool them together and convert them to miles at one shot.
You’ll have to do the conversion and pay twice. Also, you must earn at least 25,000 on each card because that’s the minimum block conversion.
Although separating the redemptions is not unheard of, quite a few other banks like DBS and UOB actually do point pooling.
Citi Lazada credit card promotions — welcome offer (until Dec 2020)
To encourage signups, there is an ongoing welcome promotion for the Citi Lazada card.
If you sign up before 31 Dec 2020, you can get
- $150 Lazada vouchers with $1,200 spend in the first 3 months of approval and,
- 1-year LiveUp membership (worth $59.90).
Although the LiveUp membership is for all new Citi Lazada cardholders, the $150 Lazada vouchers is only for new Citibank customers. That means if you have any other Citibank card, you are not eligible.
Additionally, if you sign up before Mar 2020, you can enjoy 2 instead of 1 year of annual fee waivers.
If you’re interested, go ahead and apply for the Citi Lazada card through MoneySmart.
Conclusion — who should use the Citi Lazada credit card?
In my opinion, the Citi Lazada card is quite average. It’s not terrible, but for most of the key spending categories, there are better cards out there.
It’s really only super worth getting if you intend to spend a lot on Lazada in the next few months, before Mar 2020. Otherwise, you may be better off with other rewards cards.
Alternatives to the Citi Lazada credit card
Citi Rewards card
The most common comparison is with the Citi Rewards card, which offers 10X rewards / 4 mpd on all online spend (excluding travel). This means you can use it for not just Lazada, but RedMart and every other e-commerce site there is too. The rewards cap is the same, at 10,000 points per month.
Apply for the Citi Rewards Card here:
- 10X Rewards (10 points or 4 Miles) for every S$1 spent on Shoes + Bags + Clothes at Online, Retail or Department stores, locally and overseas
- Enjoy discounts of up to 50% at Foodpanda, Lazada, Zalora, Reebonz, and more
- S$1 spent = 1 Rewards point (All other spend)
DBS Woman’s World card
The DBS Woman’s World card is another alternative to consider. This one offers 10X rewards for online purchases too, but in blocks of $5 spent only. If you travel often, the DBS Woman’s World card also gives you 6X rewards on overseas purchases.
The only thing is that the minimum income requirement for this card is $80,000 (instead of the entry-level $30,000).
Apply for the DBS Woman’s World Card here:
- S$1 = 4 miles for all online flights and travel bookings
- Bonus miles capped at S$2,000 per calendar month
- Up to S$100 cashback when you apply before 31 Mar 2018 and spend a min. of S$500 within the first month from your card approval date
HSBC Revolution card
The HSBC Revolution card has similar earn rate of 5X rewards on dining, online and entertainment, but its key appeal lies in that there’s no rewards cap. If you intend to make really big-ticket online purchases — like order a $7,000 TV or something — then this one is better.
Apply for the HSBC Revolution Card here:
- 5X Rewards points (or 2 air miles) per $1 spent on Online transactions
- Includes airline/movie/concert tickets, hotel/travel/taxi bookings, food orders, insurance premiums, and online shopping sites
- Excludes brokerages/securities and money payment/transfer websites
What do you think of the new Citi Lazada credit card? Tell us in the comments below.
Forum screenshots taken from Hardware Zone.