New portfolio signals the bank's renewed focus on credit cards
Wells Fargo & Company (NYSE: WFC) announced today a new consumer credit card portfolio, signifying an expanded role for credit cards in the bank’s transformation. In July, Wells Fargo will roll out the first card in its new Visa cards suite — the Active CashSM Card, one of the industry’s best cash back cards ever, with no annual fee and unlimited 2% cash rewards on purchases — followed later this year by a low-APR card, ReflectSM, and a new rewards card line in 2022.
“Today is a key step in Wells Fargo’s transformation journey, as we announce a new portfolio of industry-leading credit cards, and a new vision for growth for an important part of our consumer business,” said CEO Charlie Scharf. “This represents Wells Fargo’s broader effort to simplify its products and services to help satisfy the financial needs of our customers, and position ourselves as a leader in consumer offerings.”
Beginning in July, consumers will be able to apply for the card wherever they look for new credit cards – in the Wells Fargo app or online, through major online credit card sites, through mail, and at approximately 4,900 Wells Fargo branches.
“One thing the pandemic laid bare was that the credit card rewards ecosystem has become so complicated and even irrelevant as people’s lives and spending habits changed on a dime,” said Krista Phillips, head of Marketing, Product, Loyalty and Digital for Wells Fargo Credit Cards. “Customers aren’t interested in complex rewards programs, and while each of our new cards offers something different, the thread that will tie them together is simplicity. Active Cash provides the no-nonsense value customers want: unlimited 2% cash rewards on purchases with a $0 annual fee.”
Features of Active Cash include:
$0 annual fee.
Unlimited 2% cash rewards on purchases.
Customers can earn a $200 cash rewards bonus when they spend $1,000 in purchases in the first 3 months.
Introductory offer includes 0% APR on purchases and qualifying balance transfers for the first 15 months from account opening; after that, a variable APR of 14.99% to 24.99% applies.
Cell phone protection when customers pay their monthly cell phone bill with their Active Cash Card. For more information, visit wellsfargo.com/ctp.
Advanced security features, including voice verification and 2-step verification at digital banking sign-on.
Access to Visa Signature Concierge Service and Visa Signature Luxury Hotel Collection.
For more information, visit wellsfargo.com/activecash.
With no categories or limits to track, this card is a simple and straightforward option for those who want a high-value cash back credit card. Customers can choose from a range of flexible cash redemption options: as a credit to their Active Cash account, at Wells Fargo ATMs in $20 increments using a Wells Fargo debit or ATM card, direct deposit into a Wells Fargo savings or checking account, or toward purchases they’ve already made.
“We are pleased to mark a new era in Wells Fargo Credit Cards with the arrival of the Active Cash Card, the first in our new portfolio of Visa cards,” said Mike Weinbach, Wells Fargo’s CEO of Consumer Lending. “Each of these new cards and the different values they’ll offer are thoughtfully designed with specific customer needs in mind. We are proud to provide a best-in-class customer experience, and lay the foundation for Wells Fargo’s arrival as a cards competitor to watch.”
Active Cash will be accepted anywhere Visa Credit is accepted, from millions of merchants worldwide.
In addition to shaking up its consumer credit card offerings, Wells Fargo is also enhancing its position in the co-branded credit cards space. Last fall, Hotels.com® announced the launch of its first-ever credit card — the Hotels.com® Rewards Visa® Credit Card, issued and serviced by Wells Fargo. Designed with the traveler in mind, the card helps customers transform everyday spending into travel rewards. Purchases made with the card help a cardholder earn a “stamp” to be used toward reward nights at participating hotels.
“Our focus on building momentum in the co-branded card space is another exciting step in our transformation, and we believe the business is ripe for growth at Wells Fargo. We look forward to bringing even more co-brand card partners to Wells Fargo’s proven marketing and underwriting capabilities, as well as new rewards strategies. Together we can deliver great value and exclusive benefits to customers,” said Weinbach.
Source: Company Press Release