Ecommerce giant Amazon has teamed up with Barclays to launch a co-branded credit card in the UK to allow customers to earn rewards when they spend.

The rewards can be redeemed for gift cards on Amazon.co.uk.

The card is the latest partnership between the companies following the launch of Instalments by Barclays in the UK.

Instalments is a reusable credit account that allows Amazon customers to spread the cost of purchases over £100 across fixed monthly payments.

The new venture means Amazon Barclaycard customers earn 1% rewards on all Amazon purchases, 0.5% rewards on everyday spending outside Amazon for the first 12 months and 0.25% after that.

Prime members can get 2% back from all spending with Amazon during designated shopping event days such as Prime Day, Black Friday and Cyber Monday.

Customers can track their rewards balance and redeem rewards for Amazon gift cards in the Barclaycard app with no annual fee. Customers also receive a £20 gift card for Amazon.co.uk when their application is accepted.

Barclaycard’s entertainment perks can also be accessed by cardholders, including advance pre-sales for selected UK events, 10% off pre-sale tickets when they use their card to pay, and 10% off food and drink at selected venues.

Amazon UK country manager John Boumphrey said: “We’re excited to introduce the Amazon Barclaycard – designed to offer card members ways to earn rewards for their Amazon purchases and everyday activities with no annual fee.

“Delivering value to our customers is incredibly important to us, so we’re delighted to introduce a new payment option that allows customers to save and earn on Amazon.”

Barclays head of everyday money management Steve Weston added: “We’re delighted to introduce the Amazon Barclaycard, the perfect credit card for anyone who loves to shop at Amazon and wants to be rewarded for doing so on their everyday spend.

“This partnership highlights our commitment to deliver compelling offers for customers as part of our strategy to grow our UK credit card business.”