San Francisco-based Wells Fargo and American Express have launched two new credit cards: ‘Propel 365’, and ‘Propel World’, aimed at wealthy customers.
The cards will be available for Wells Fargo customers and accepted on the American Express network.
They offer rewards to either big everyday spenders (Propel 365) or frequent travelers (Propel World) who also have another account with Wells Fargo. Depending on the size of their other accounts, cardholders can get up to an extra 50% increase in their reward points each year.
‘Propel 365’ cardholders will earn 20,000 bonus points if they spend $3,000 in net purchases over the first three months, while ‘Propel World’ cardholders will receive 40,000 bonus points in the same conditions.
There is no expiration or earning cap on rewards points on the ‘Propel’ cards and users can combine the rewards of different card products.
William Stredwick, senior vice president of Global Network Partnerships at American Express, said: "The new Propel products offer everything from early ticket sales to some of the most popular concerts coming out today, as well as discounts from leading brands and extraordinary travel offers and packages, allowing Propel cardholders to enjoy the numerous advantages associated with the American Express brand together with the outstanding rewards and services offered by Wells Fargo."
With these new products, Wells Fargo hopes to bulk up its credit card business. The bank is one of the largest US mortgage and auto lenders, but has a weaker market position in credit cards.
Beverly Anderson, head of Wells Fargo’s consumer financial services, explained: "We know we are underpenetrated in this customer base, and we are looking to build our share."
Wells Fargo and American Express announced their agreement in August 2013. Since the third quarter, they have been testing the new offerings in five pilot markets around the country.