Wayfair launches its own credit cards amidst a boost in digital home decor sales.
Wayfair partnered with Citi Retail Services to release a co-branded Mastercard and a private label credit card. The digital retailer’s new cards include loyalty rewards and benefits, and have no annual fee. Both credit cards offer 5% back in Wayfair rewards as well as 3% in rewards at qualifying grocery stores, among other loyalty benefits. The earned rewards have no expiration date, which could incentivize potential card owners. To promote the launch of its credit cards, Wayfair is offering $40 off a purchase of $250 or more for new credit card holders. With homebound shoppers spending more on homegoods during the Coronavirus pandemic, the launch of the credit cards could help Wayfair capitalize on the trend and connect with dependable shoppers.
As a dominant disruptor in the big box industry, Wayfair’s credit cards could help it continue to attract e-commerce spenders and fully recover from a financially fickle year. While Wayfair started off the year economically vulnerable, by August the brand had seen an 84% jump in sales. Though many retailers took a financial hit during the pandemic, Wayfair had a paradoxical situation having gone from a $330 million net loss in February to a $274 million net income by August. The home decor giant could continue to increase its margins by converting frequent shoppers into loyal credit card holders. As consumer engagement for experiential rewards stagnates, Wayfair’s credit cards could provide an original shopping experience and foster valuable interactions to increase engagement, according to a Gartner report. With e-commerce becoming a shopping mainstay, Wayfair could connect with consumers spending more time at home, and in turn spending more money on their homes. Wayfair’s credit cards follow in the footsteps of other e-commerce giants appealing to home decor shoppers during the pandemic, including Amazon and Etsy.
The new credit cards could boost loyalty and sales for Wayfair while offering a convenient shopping experience for customers. Wayfair’s credit card benefits could also attract new customers and help the retailer differentiate itself from competitors to become the leading digital home decor destination.