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Wells Fargo (WFC) Unveils Reflect, 2nd in Visa Card Suite
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Foraying into the credit card business, Wells Fargo & Company (WFC - Free Report) recently unveiled its latest credit card — the Wells Fargo Reflect Card. This follows the launch of a range of new Visa cards, the Active Cash Card, in July, in its new consumer credit card portfolio. The company will also offer another line of reward cards next year.
The industry’s first, Reflect is a no-annual fee, everyday value card which rewards cardholders for their regular timely payments.
Following the previously-launched cards in the new Visa portfolio announced this June, Reflect garners a stand-out and candid feature of rewarding consumers for on-time payments, a habit that will enable credit creation over time. Customers will be able to extend the 18-month introductory 0% APR on purchases and qualifying balance transfers by up to three months, for an aggregate 21 months, with timely minimum payments during the introductory and extension periods. The feature will make Reflect the bank’s card with the longest lasting and lowest possible introductory rate. After the introductory period, a variable APR of 12.99% to 24.99% would be applicable.
Krista Phillips, head of Branded Cards and Marketing for Wells Fargo Credit Cards, said, “These continue to be uncertain times for consumers, so we want to provide simple, reliable tools to help them take control of their finances. Our customers know what works and what doesn’t work for them, and we’re pleased to offer a way to get a break from interest so they can plan for the future or pay off past expenses with a low, everyday APR even after the introductory period ends.”
While the other three banking giants — JPMorgan Chase & Co. (JPM - Free Report) , Bank of America (BAC - Free Report) and Citigroup (C - Free Report) — have a decent presence in the consumer business, the move indicates Wells Fargo’s renewed focus on credit cards, which is likely to play a key role in the bank’s transformation. In fact, apart from the consumer credit card offerings, Wells Fargo is cementing its foothold in the co-branded credit card space. Last fall, the company issued and serviced Hotels.com’s first-ever credit card — the Hotels.com Rewards Visa Credit Card — which offered travel rewards to customers on their spending.
The coronavirus crisis has spurred the use of electronic forms of payments, with a much greater adoption of digital and contactless solutions. The digital form of payments will likely sustain beyond the pandemic. The key trends include a preference for contactless transactions and the rapid adoption of e-commerce. Aversion to cash, merchant requirements for omnichannel acceptance and a need to automate business-to-business payments are catching up fast. Hence, the company's focus on credit cards and a launching line of rewards recently will likely enable it to capitalize on this trend.
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Wells Fargo (WFC) Unveils Reflect, 2nd in Visa Card Suite
Foraying into the credit card business, Wells Fargo & Company (WFC - Free Report) recently unveiled its latest credit card — the Wells Fargo Reflect Card. This follows the launch of a range of new Visa cards, the Active Cash Card, in July, in its new consumer credit card portfolio. The company will also offer another line of reward cards next year.
The industry’s first, Reflect is a no-annual fee, everyday value card which rewards cardholders for their regular timely payments.
Following the previously-launched cards in the new Visa portfolio announced this June, Reflect garners a stand-out and candid feature of rewarding consumers for on-time payments, a habit that will enable credit creation over time. Customers will be able to extend the 18-month introductory 0% APR on purchases and qualifying balance transfers by up to three months, for an aggregate 21 months, with timely minimum payments during the introductory and extension periods. The feature will make Reflect the bank’s card with the longest lasting and lowest possible introductory rate. After the introductory period, a variable APR of 12.99% to 24.99% would be applicable.
Krista Phillips, head of Branded Cards and Marketing for Wells Fargo Credit Cards, said, “These continue to be uncertain times for consumers, so we want to provide simple, reliable tools to help them take control of their finances. Our customers know what works and what doesn’t work for them, and we’re pleased to offer a way to get a break from interest so they can plan for the future or pay off past expenses with a low, everyday APR even after the introductory period ends.”
While the other three banking giants — JPMorgan Chase & Co. (JPM - Free Report) , Bank of America (BAC - Free Report) and Citigroup (C - Free Report) — have a decent presence in the consumer business, the move indicates Wells Fargo’s renewed focus on credit cards, which is likely to play a key role in the bank’s transformation.
In fact, apart from the consumer credit card offerings, Wells Fargo is cementing its foothold in the co-branded credit card space. Last fall, the company issued and serviced Hotels.com’s first-ever credit card — the Hotels.com Rewards Visa Credit Card — which offered travel rewards to customers on their spending.
Shares of this Zacks Rank #3 (Hold) company have jumped 19.1% over the past six months compared with the industry's growth of 8.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Conclusion
The coronavirus crisis has spurred the use of electronic forms of payments, with a much greater adoption of digital and contactless solutions. The digital form of payments will likely sustain beyond the pandemic. The key trends include a preference for contactless transactions and the rapid adoption of e-commerce. Aversion to cash, merchant requirements for omnichannel acceptance and a need to automate business-to-business payments are catching up fast. Hence, the company's focus on credit cards and a launching line of rewards recently will likely enable it to capitalize on this trend.