BI Intelligence
Wells Fargo recently introduced the Wells Fargo Propel American Express Card, the third in a suite of combined Wells Fargo-Amex products. The card, which carries no annual fee, offers rewards for gas and restaurant purchases and links consumers to the Wells Fargo Rewards program.
Wells Fargo launched the card to earn “more of its customers’ business,” according to Beverly Anderson, head of Wells Fargo Consumer Financial Services. The card, which is the only Propel card without an annual fee, was developed in response to customer requests for this type of product, according to LowCards.com. And it carries perks that incentivize existing Wells Fargo account holders to apply, like an extra 10% on rewards points for Wells Fargo checking, savings, or PMA Package account holders.
The partnership is also likely a move by Amex to widen the card network’s client base after a challenging 2015.
- Amex is about to lose a large swath of business. Last year, the firm lost co-brand partnerships with both JetBlue and Costco, and earlier in January, Fidelity opted to switch its portfolio to Visa. The loss of Costco looks to be particularly impactful – in 2014, Costco cards comprised 8% of the firm’s billed business – and is expected to impact profits for two years.
- So the network seems to be looking to attract more and different types of clientele to its product in the coming months. Amex has been doubling down on small business efforts by partnering with mobile point-of-sale (mPOS) terminal vendors and expanding its OptBlue program to make it simpler for small businesses to accept Amex cards. The firm has also introduced Plenti, a rewards program that's attracted major merchants like Macy's, Exxon, and Mobil, and expanded on Bluebird and Serve, its two prepaid card options. Partnering with Wells Fargo on a card with robust rewards and another annual fee could attract more customers to the service.
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