Mastercard Incorporated (NYSE:MA) has partnered with Expedia Group (NASDAQ:EXPE) and Wells Fargo (NYSE:WFC) to launch two new co-branded credit cards: the One Key Card and One Key+ Card. Applications for these cards will be accepted nationwide later this summer. The One Key Card will not have an annual fee, while the One Key+ Card will have an annual fee of $99.
Designed for travelers, the One Key Cards offer rewards in the form of OneKeyCash, which can be redeemed across Expedia, Hotels.com, and Vrbo apps for bookings on hotels, vacation rentals, car rentals, activities, and flights. Existing Hotels.com cardholders will continue to earn OneKeyCash with their current cards until they receive their new One Key Card in September.
The primary goal of these new card offerings is to provide U.S. travelers with greater flexibility, instant discounts, enhanced perks, and attractive rewards. This launch is timely given the growing consumer trend of prioritizing experiences over material goods, leading to increased interest in travel.
The One Key and One Key+ cards also offer instant tier upgrades to One Key Silver and One Key Gold, respectively. These tiers provide benefits such as 15-20% savings on over 10,000 hotels worldwide, priority travel support, and in-stay benefits like food and beverage credits or complimentary room upgrades at select VIP Access properties.
Card Benefits
One Key Card: Earn $400 in OneKeyCash on $1,000 in purchases within the first three months.
One Key+ Card: Earn $600 in OneKeyCash on $3,000 in purchases within the first three months.
Both cards offer 3% OneKeyCash rewards on Expedia and Vrbo purchases, 3% at gas stations and grocery stores, and other purchases earn 1.5% (One Key) or 2% (One Key+). Neither card has transaction fees.
Common features include cell phone protection, trip protections such as trip cancellation and interruption coverage, auto rental collision damage waiver, and common carrier travel accident insurance. Cardholders also benefit from Mastercard World Elite perks, including Mastercard ID Theft Protection, Zero Liability Protection, and Global Services for emergency support.
These new offerings are expected to attract new customers and increase card usage, boosting Mastercard’s net revenues through its payment network fees. In the first quarter, Mastercard’s payment network net revenues improved by 7% year over year.
Mastercard continues to focus on partnerships to launch new card offerings that cater to the growing desire for travel. This month, Mastercard partnered with Global Hotel Alliance to launch a co-branded card offering personalized travel benefits and rewards to affluent cardholders in the UAE. In March 2024, Mastercard teamed up with Emirates NBD and Marriott Bonvoy to introduce co-branded credit cards that offer exclusive hotel stay benefits.
Mastercard Stock Performance
Mastercard shares have gained 9.4% over the past year, compared to the industry’s 7% growth.
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