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Wells Fargo's Co-Branded Credit Card Strategy For Rent Payment Faces Challenges, Puts Financial Strain

When Charlie Scharf became CEO of Wells Fargo & Co (NYSE:WFC), one of his key priorities was to expand the bank’s credit card business. However, a high-profile partnership with Bilt Technologies is reportedly complicating this strategy. In 2022, Wells Fargo launched a credit card with Bilt Technologies, a fintech startup backed by big names such as Blackstone Inc (NYSE:BX) and Mastercard Inc (NYSE:MA). This co-branded card allowed users to pay rent without incurring landlord fees and earn rewards points, resulting in over one million accounts being activated within 18 months, predominantly by young adults. Despite its popularity, the card is costing Wells Fargo up to $10 million monthly, as internal projections about cardholder behavior proved inaccurate, according to a report ...