Wells Fargo to Launch Two Credit Cards for Big Spenders
Wells Fargo is looking to attract a more affluent customer base by launching two new credit cards. The cards are designed for current Wells Fargo customers who are heavy spenders or who travel often.
Propel World and Propel 365 offer a 50% increase in credit card rewards for those who use them properly. Both cards will run over the American Express payment network. The bank is targeting people who spend over $100,000 per year on their credit cards.
The Propel World card gives two times the points for hotel purchases and triple the points for airline purchases. This card has chip and PIN technology.
The Propel 365 card gives three times the points on gasoline purchases made in the United States, as well as double the points for transactions at restaurants. There are no foreign transaction fees with this card.
Wells Fargo says that only about 3% of their cardholders spend more than $100,000 per year on their cards. Beverly Anderson, head of the Wells Fargo’s consumer financial services group, said, “We know we’re underpenetrated in this customer base, and we’re looking to build our share.”
Wells Fargo has excelled in mortgage lending and auto financing, but has lagged behind in the credit card segment. CEO John Stumpf has given a corporate directive to double the bank’s credit card market share in the coming years. The company has also formed credit card partnerships with Dillards and American Express.
These new cards seem to be another step toward the bank’s goal of becoming more of a factor in the credit card industry.