Wawa Shifts from Exclusive Branding to Co-Branded Payment Cards
In a move aimed at enhancing customer flexibility and improving the overall payment experience, Wawa, the popular convenience store chain operating over 1,100 locations primarily in the Mid-Atlantic region, has ended its decade-long partnership with Citi and transitioned to a cobranded credit card partnership with First National Bank of Omaha (FNBO).
The shift from a private-label card to a cobranded one is expected to provide greater flexibility for Wawa customers. The new FNBO cobranded card allows use beyond just Wawa stores, backed by the Mastercard network, which offers benefits such as Mastercard Global Service, ID Theft Protection, and Zero Liability Protection.
The payments landscape has evolved, causing the Citi card to struggle to keep pace. Online complaints suggest the old Citi card was not compatible with the Wawa app. This, along with other limitations, led to customer frustrations.
FNBO brings relevant experience to convenience store credit cards, having partnered with retailers like Sheetz, indicating a strong alignment with Wawa’s needs. Cardholders will earn points specifically that can be redeemed for Wawa gift cards, distinct from the regular Wawa rewards program.
The new Wawa credit card partnership reflects a broader decline in private-label card usage, with private-label cards accounting for 20.8% of the credit card market by 2024 (down from 26% in 2022). This shift towards cobranded cards is a response to evolving customer expectations and technological needs.
Wawa's new credit card partnership reunites it with Mastercard, following a legal battle over a 2019 data breach. Malware stole credit card data from Wawa customers for at least nine months before Visa alerted Wawa to the issue. Wawa settled a $12 million class action lawsuit over the data breach, as well as an $8 million payment to seven states in which it operates. Mastercard issued a $17.8 million reimbursement assessment against Bank of America, Wawa's bank, following the data breach.
Despite these challenges, Wawa remains committed to providing its customers with a seamless and secure payment experience. The new FNBO cobranded card is just one part of this ongoing commitment.
References: 1. PaymentsJournal.com 2. CStoreDive.com
- The transition to a cobranded card with First National Bank of Omaha (FNBO) represents Wawa's response to evolving customer expectations and technological needs in the finance sector.
- The new Wawa credit card partnership, backed by Mastercard, signifies an effort to offer customers a seamless and secure payment experience, leveraging technological advancements in the finance and technology industries.
