Wyndham Hotels is expanding its lineup of rewards credit cards by introducing a debit card, reportedly the first of its kind from a major hospitality brand in the U.S.
In some ways, the Wyndham Rewards Debit Card transforms the hotel chain into a financial institution. There is no minimum balance required to open an account, but cardholders who maintain an average of $2,500 can waive the $6 monthly fee. Like most bank accounts, Wyndham accounts are insured by the FDIC for up to $250,000.
A Market of Younger Travelers
Wyndham is marketing its debit card specifically to younger travelers. Research has shown that Gen Z is the cohort most likely to prefer debit cards over credit. Some 70% of Gen Z consumers use their debit cards at least once per week, according to a study from EY.
Young travelers, in particular, are emerging as a lucrative market. Separate data from PMG shows travel as a key spending category for Gen Z, with two-thirds planning to spend more on travel in 2025 and nearly 60% considering loyalty programs essential when booking their travel. JetBlue’s recent decision to add Venmo as a payment option for airline tickets is widely seen as an effort to attract younger travelers.
Enticing Spenders Away From Credit
The Wyndham card is not the first debit card focused on travel—others include Truist’s Delta Airlines debit card and the Hilton Honors Debit Card, which is available in the UK.
Consumers typically use credit cards for travel purchases, such as flights and hotels, primarily for rewards, purchase protection, and financing options. However, industry experts suggest there may be room for debit cards in this space.
“Most debit cardholders would be motivated to use their cards more frequently if they were offered rewards,” said Elisa Tavilla, Director of Debit Payments at Javelin Strategy & Research. “The Wyndham Rewards card could incentivize consumers to pay for their hotel stays with a debit card instead of credit. As a decoupled debit product, it also allows merchants like Wyndham to fund debit rewards with savings from lower interchange costs.”
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