Wyndham Hotels & Resorts is entering the debit card market by introducing the Wyndham Rewards Debit Card. This move marks a shift in how hotel loyalty programs connect with younger travelers.
According to Wyndham, this is the first for the U.S. hotel industry and is designed to capitalize on the increasing popularity of debit cards and digital wallets among Gen Z and Millennials.
“We believe that there’s a great opportunity in the younger demographic, Gen Y, Gen Z, to target this customer who is more credit averse and more interested in using cash,” Charmaine Taylor, SVP of Strategic and Financial Partnerships at Wyndham, said.
The new Mastercard-powered debit card, created in partnership with Galileo Financial Technologies (SoFi’s technology platform), enables users to earn Wyndham Rewards points on everyday purchases, building loyalty beyond hotel stays.
“We are encouraging the usage of our debit versus any other product by incorporation to our Wyndham Rewards program so that we can earn points on everyday spending,” said Taylor.
According to data from EY, 70% of Gen Z consumers frequently use debit cards, while research from PMG reveals that 55% of this group intend to boost their travel spending.
“Research continues to show a large number of travelers, particularly younger consumers such as Gen Z, prefer debit cards as their primary payment method,” said Taylor. “Unfortunately, many have been left on the sidelines when earning free hotel nights and other travel rewards.”
Wyndham also sees the card as a way to engage with those building credit and may eventually transition to the company’s credit card products.
“The debit card is meant to not only round out our financial product suite to benefit those members who only want to use cash, but it’s also for members who might still be building their credit,” said Taylor.
To connect with its target audience, Wyndham will use a variety of marketing strategies, focusing heavily on digital and social platforms. Influencer marketing will play a crucial role in building awareness.
In the future, Wyndham plans to broaden its financial product range internationally.
