Wyndham Launches U.S. Debit Card to Target Gen Z

Wyndham Hotels & Resorts is heading into the debit card space with the launch Monday of the Wyndham Rewards Debit Card, a move that signals a shift in how hotel loyalty programs engage with younger travelers.

This initiative, which Wyndham says is a first for the U.S. hotel industry, aims to capture the growing preference for 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 really target this customer who is more credit averse and more interested in using cash,” Charmaine Taylor, SVP of Strategic and Financial Partnerships at Wyndham, told Skift.

The new Mastercard-backed debit card, developed in collaboration with Galileo Financial Technologies (SoFi’s technology platform), allows users to earn Wyndham Rewards points on everyday spending to accrue loyalty outside of traditional hotel stays.

“We are encouraging the usage of our debit versus any other product by incorporation to our Wyndham Rewards program, so being able to earn points on everyday spend," said Taylor.

Cardholders will also receive free Wyndham Rewards Gold level membership, hotel booking discounts, and annual point bonuses.

Consumers can apply for a debit account starting Monday.

Capturing the Debit-First Market

Data from EY shows that 70% of Gen Z consumers use debit cards regularly, and PMG research indicates that 55% of this demographic plan to increase 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 method of payment,” said Taylor. “Unfortunately, that means many have been left on the sidelines when it comes to earning free hotel nights and other travel rewards.”

Wyndham also sees the card as a way to engage with those who are 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 in the process of building their credit as well," said Taylor.

Wyndham did not disclose specific projections for debit card user acquisition or point redemption rates.

Recognizing the importance of digital convenience for younger travelers, Wyndham has focused on seamless integration with digital wallets.

Competitive Landscape and Future Expansion

Wyndham acknowledges that its move into the debit card space may attract competition.

“Because of the size of the market it would not surprise us at all if there are others who will come after us to try to capture a piece of this market,” said Taylor.

To reach its target audience, Wyndham will employ a mix of marketing strategies, with a strong emphasis on digital and social channels, adding that influencer marketing will play a key role in generating awareness.

Looking ahead, Wyndham has ambitions to expand its financial product offerings internationally.