Wells Fargo is looking for a larger slice of the credit card pie with a new credit card offering through a strategic partnership with American Express.
The bank will test the waters in a pilot program where they will offer this credit card in key U.S. markets this fall. They plan to roll out the card nationwide by mid-2014. Wells Fargo customers will be able to apply for the cards online and in 6,000 retail store locations.
A Wells Fargo and American Express partnership is seen as a win for consumers by both companies, because members get the benefits of both networks, including the perks that come along with being an AmEx cardholder.
As part of the partnership, American Express is providing its Partner Advantage services to assist Wells Fargo in developing exclusive benefits and customized offers from the American Express.
LoyaltyEdge from American Express will be involved in the design of a new Wells Fargo loyalty program which will offer merchandise and gift cards that can be redeemed with points. LoyalityEdge was created to help AmEx partners develop customized loyalty programs.
The program is design is based upon American Express’ success with its own rewards and loyalty program. Delta Air Lines was the first American Express partner to sign on with LoyaltyEdge, leading to the launch of their online SkyMiles Marketplace, featuring 6,000 items which can be bought for miles and/or cash. First National Bank of Omaha and FedEx have are also used the loyalty program designed by AmEx.
The partnership with AmEx is part of the bank’s strategy to build their credit card portfolio, while also helping their customers reach their financial goals.
Though the partnership is new, the two companies have roots. Henry Wells and William Fargo actually founded American Express in 1850. The two create the Wells Fargo bank two years later. So while they are separate companies, they do share a long and rich history.