Wayfair on Friday introduced a private label credit card and a co-branded Wayfair Mastercard through a partnership with Citi Retail Services, the company announced.
Both credit cards offer 5% back in rewards or up to 60 months of financing on certain Wayfair purchases. The Wayfair Mastercard also gives customers 3% back in rewards at qualifying grocery stores, 2% for some online purchases and 1% for every other "qualifying" purchase, according to the company press release.
The cards have no annual fee and no expiration date for rewards earned. Shoppers will get $40 off their first qualifying Wayfair purchase of $250 or more, per the company statement.
As many retailers have taken a financial hit during the COVID-19 pandemic, Wayfair has managed to turn its losses around. In February, the retailer disclosed a net loss of $330.2 million, up from $143.8 million the year prior, and laid off about 550 staffers. But as of early August, the company saw a nearly 84% jump in sales catalyzed in part by the coronavirus pandemic, and recorded net income of almost $274 million. In September, Wayfair hired Fiona Tan, a previous Walmart exec, to serve as its head of global customer and supplier technology.
"At Wayfair, we are focused on creating the best possible shopping experience for home, and that includes delivering the best value while making it as easy as possible for customers to shop millions of items for every room in the home," said Larry Lataif, head of U.S. consumer financing at Wayfair. "With the Wayfair Credit Card and Wayfair Mastercard, we are also able to reward our loyal customers with more added perks and benefits than ever before."
Growth in e-commerce spending attracted Citi to the partnership, while for Mastercard, the deal was a chance to offer shoppers rewards as they spent more on home goods and other items, especially "as we all are spending more time at home," Meredith Spatz, executive vice president in North America for Mastercard, said in a statement.
Wayfair's success comes as consumers have been spending more on their home during the pandemic, resulting in higher sales for its peers, too. A June report from Mastercard found that online and in-store hardware sales increased by 36.2% in May, and furniture sales went up by 7.5%. Similar stores like Overstock and At Home also have experienced a boost in sales during the pandemic, further signaling pandemic-induced consumer spending on home decor.