Wells Fargo and Bilt have refuted claims that their joint credit card program is encountering difficulties, dismissing reports that surfaced over the weekend. The partnership, established in 2022, offers a credit card that enables users to pay rent while earning rewards points. According to The Wall Street Journal (WSJ), current and former employees revealed that Wells Fargo is experiencing monthly losses of up to $10 million due to the program.

The WSJ report states that Wells Fargo's revenue projections, including expectations of customers carrying balances, were inaccurate, leading to significant financial setbacks. As a result, the bank has halted participation in new co-branded card initiatives and witnessed the departure of executives hired for such programs. While forthcoming card offerings will not involve partners, an exception lies in Wells Fargo's existing Wells-Expedia deal.

Despite the allegations made in the WSJ report, both Wells Fargo and Bilt have denied any doubts surrounding their co-branded credit card relationship. Representatives from the companies emphasized that there have been no discussions among decision-makers about terminating the Bilt agreement. Wells Fargo stated that the partnership follows the typical trajectory of new card launches, which often require multiple years to become profitable. The bank declined to comment on other claims made in the WSJ story, such as the reported abandonment of co-branded card initiatives and revenue projections.

Bilt, the FinTech startup partnered with Wells Fargo, proclaimed its commitment to a long-term partnership with the banking giant. CEO Ankur Jain reiterated this sentiment on Twitter, asserting that their relationship with Wells Fargo remains unchanged.

The report comes amidst a potential existential crisis facing co-branded credit cards, as highlighted in a previous PYMNTS article last month. PYMNTS research revealed that general-purpose credit cards dominate the consumer credit card landscape, with significantly higher numbers of consumers holding general-use cards compared to co-branded or store-specific cards—particularly among lower-income and younger age groups. Additionally, cardholders who possess both types of cards tend to reach for their general-use cards more frequently. However, co-branded cards still maintain popularity among older consumers and individuals earning over $100,000 per year, as they are more likely to pay off their balances each month.

As of now, Wells Fargo and Bilt assert their intention to continue their co-branded credit card relationship, with no immediate plans to terminate the agreement.