Galileo Bets Big on Debit Rewards to Boost Loyalty Among Credit-Wary Consumers

About 90% of U.S. consumers have debit cards. Forty-six million consumers don’t have established credit histories — which means they don’t have credit cards.

With the rising use of debit as a preferred payment method, brands are missing out on a chance to deepen their loyalty from these individuals.

“Brands are starting to recognize there’s an opportunity — that when their members show up at a hotel or in stores, wherever they might be at the point of decision and at the point of purchase, they’re using debit,” Galileo Financial Technologies CEO Derek White told Karen Webster.

But when they’re wielding their debit cards in plastic or digital wallet form at the register, they’re not getting rewards for their business, he said.

That’s changing. Earlier this month, Galileo, SoFi’s technology platform, said it is partnering with hotel rewards program Wyndham Rewards to launch a debit card that lets users earn travel rewards and points on everyday spend. In addition to earning points to be redeemed, cardholders also gain perks like complimentary Wyndham Rewards Gold level membership, hotel booking discounts and an annual point bonus, the firms said. The Wyndham Rewards Debit Card will be powered by Galileo Financial Technologies and issued by Sunrise Banks N.A.

“It’s similar to what’s already deeply ingrained in the ‘reward psyche’ of many Americans tied to co-branded credit cards,” White said.

Points earned through debit transactions will feed into the “master” points balance consumers hold with Wyndham, he said.

Providing Payments (and Rewards) Optionality

At a high level, “whether they’re separating purchases or they have a preference for debit over credit, we wanted to create the optionality that has not existed to date — and by providing that optionality, and the connection to the brand … that’s where the real opportunity lies,” White said.

The opportunity is especially keen for young consumers, including Gen Z, who are among the most avid users of debit.

In terms of the mechanics, Galileo “eliminates many inefficiencies” of launching a card, as it integrates the issuing, program management and processing on the back end through a single point of connectivity across its platform, White said.

“We provide the end user interface,” he said of the front end, and “the technology is designed so that it’s scalable for integrations with multiple vendors.”

The Wyndham/Galileo effort represents the first launch of a debit rewards program in the hospitality sector, helping brands broaden their loyalty efforts beyond credit cards. The market spans more than 9,000 properties with 130 million guests checking in annually.

“Wyndham was one of the first movers that wanted to bring this to market,” White said, but there will be an expanding pipeline of brands that will look to tie debit cards to rewards (and want to streamline the process by linking to Galileo).

Galileo’s platform allows brands to build the loyalty and rewards component. It’s the latest iteration of a commerce and rewards ecosystem that White said he has seen evolve over the past 20 years and that Galileo is now helping extend into debit.

Although the debit card program has made its debut in the hospitality sector, it’s available to brands in any industry.

“We’re just getting started — and we were able to move at speed to bring this first program [with Wyndham] to market,” White said. “We have a healthy pipeline, and we are excited about what the future is going to bring … the combination of the brands wanting to deepen their experience and customers wanting to use debit at the point of purchase is really powerful.”