Wells Fargo to launch 2% cash-back credit cards to compete with rival products
Financial services company, Wells Fargo & Co. Chief Executive Officer Charlie Scharf is going to give his biggest push to scale up a huge business line after taking over, floating a roster of credit cards aimed at competing with popular products from big rivals.
The first volley is the Active Cash card, providing a flat 2% cash-back rate on all spending for no annual fee.
This move will be a challenge to Citigroup Inc.’s Double Cash product and a card offered together with Synchrony Financial and PayPal Holdings Inc.
Wells Fargo will provide a low-interest-rate card in the upcoming months and a new rewards card line next year.
Scharf, who has formerly headed Visa Inc. and JPMorgan Chase & Co.’s retail banking arm, is emphasizing a business he knows best as he tries to renew the embattled San Francisco-based bank.
Krista Phillips, whom the bank lured from Citigroup last year to lead marketing, product, loyalty and digital for its credit-card business, said on Tuesday in a Bloomberg TV interview, “For a long time we were punching below our weight in the credit-card space. We’re focusing on not just re-establishing our brand but giving customers products of value that they can’t find anywhere else.”