The news: Wells Fargo unveiled the Reflect card, a no-annual-fee credit card with an 18-month introductory 0% APR on purchases and balance transfers, per a press release.
Here’s how it works: The Reflect card extends the 0% APR offer for an extra three months if customers make their minimum monthly payments on time for the first 18 months.
Other features include cell phone protection when customers use their card to pay their monthly cell phone bill and fraud protection. Cardholders can also earn cash back in the form of statement credits through the My Wells Fargo Deals rewards program.
The opportunity: The Reflect card can help Wells Fargo tap credit-averse customers who may normally use other interest-free or flexible payments solutions to encourage spending on its cards.
Avoiding interest is a top driver of debit and buy now, pay later (BNPL) use: In 2020, 40% of US consumers said they used BNPL solutions to avoid paying credit card interest, according to The Motley Fool. And another 53% of US consumers said they used debit cards because they wanted to pay with funds they had available at the time of purchase and avoid debt, per PYMNTS.
The bigger picture: Wells Fargo has been optimizing its business to focus on sectors with strong revenue-generating potential, like credit cards.
Related Content: Want to learn more about the tactics issuers are using to invigorate credit card spending? Check out the “Credit Cards in the ‘Next Normal’” report.