Citigroup has won the right to issue two new credit cards from Wayfair, edging out Alliance Data Systems, according to a report from CNBC. Here’s what you need to know about the new Wayfair credit cards from Citi, including a closed-loop store card and a co-branded retail Mastercard.
Citi Cashing in On Coronavirus E-Commerce Success
E-commerce has been a significant beneficiary of the coronavirus pandemic. Due to the difficulty and perceived danger of shopping in physical stores, online sales have grown steadily. Now, Citi is increasing its retail card stake, winning the right to issue two credit card products for online retailer, Wayfair.
The new cards will both earn 5% back on purchases made with the online-retailing giant. One card, a closed-loop retail card, will work only with purchases made directly with Wayfair. The other card, a co-branded retail card, will feature the Mastercard payment network. That card, which would be accepted in 212 nations worldwide, will earn cash back in select categories:
- 5% back on Wayfair purchases
- 3% back on grocery store purchases
- 2% back on online purchases
- 1% back on all other purchases.
Both cards are expected to feature a variable APR of around 26% and allow cardholders to defer payments on select Wayfair purchases for between six and 24 months.
Wayfair Experiencing Significant Growth During COVID-19
Getting a stake in Wayfair’s success is a major coup for Citi. Wayfair has experienced exceptional growth over the pandemic lockdown, with an 84% jump in sales in Q2 2020. The second quarter of 2020 was the first time the company turned a profit since going public back in 2014. Wayfair stock prices are also high, rising by 192% so far in 2020.
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