Microsoft is partnering with Barclays, a global financial services provider, to launch the Xbox Mastercard later this month, the Xbox maker announced Tuesday, March 12. Cardholders will be able to redeem points accumulated based on their spending for games and add-ons from the Xbox Games Store.

The card, which has no annual fee, will be offered exclusively to Xbox insiders in the United States, Alaska, and Hawaii beginning September 21. After insiders become available, Microsoft plans to open the credit card to Xbox players across the U.S. during 2024.

"With the Xbox Mastercard credit card, players can earn card points for everyday purchases and redeem them for games and add-ons on xbox.com," Dave McCarthy, CVP of Xbox Player Services, explained in a company blog post.

APR interest rates range from 20.99% to 31.99%, depending on the credit. Also, as with most credit cards, you earn more points on certain purchases than others. Purchases of eligible products at Microsoft Store earn 5x points for every dollar spent on the card, and subscribing to the best streaming services, such as Netflix and Disney Plus, earns 3x points. All other purchases are 1x the normal rate.

Somewhat confusingly, the Xbox Mastercard is also not linked to the Microsoft Rewards program in any way. Instead, the card stands alone as a pot of points that can be earned through purchases.

Recruitment for the US-based Xbox Insiders, Microsoft's early access program for testing new Xbox features, will begin on September 21.

The cards will be available in five different designs, pictured above, and can be customized with Xbox gamertags.

As an enrollment bonus, cardholders will receive 5,000 points (worth $50) on their first purchase and new Game Pass members will receive three months of Xbox Game Pass Ultimate. If they are already subscribers, they can also give 3 months of free access to friends and family.

We have often referred to Microsoft's monthly game subscription service as one of the best deals in the gaming industry. The top Ultimate tier is usually $15/month and includes access to a library of over 400 games, Xbox Live Gold membership for online gaming, cloud streaming available on Xbox, PC, Android, and iOS, and full ownership of select titles, All the best perks.

Microsoft is no stranger to unconventional collaborations (which usually seem to come out of nowhere) to expand the Xbox brand. Last week, Mattel unveiled a new kit for the Xbox 360's LEGO-style rival, Mega. And let's not forget the $10,000 limited edition Xbox Series X from Gucci.

As for credit cards, we haven't seen Microsoft offer an Xbox card since the early days of Xbox Live. However, given that rival Sony already offers its own points-based PlayStation credit card, it is clear that Microsoft is aiming to develop an Xbox competitor.