Citigroup (C) - Get Report will partner with Wayfair (W) - Get Report to launch a private-label Wayfair credit card as well as a co-branded Mastercard that features benefits for the online furniture seller's customers.
Citi edged out Alliance Data Systems for the right to partner with Wayfair, CNBC reported.
“With ecommerce continuing to surge in popularity," the partnership will "provide customers with seamless, convenient financing embedded in the path to purchase,” said Craig Vallorano, who heads Citi Retail Services.
Starting Friday, the two cards will offer 5% back in rewards or financing of up to 60 months on eligible Wayfair purchases.
Wayfair Mastercard holders will also earn perks like 3% back in rewards at qualifying grocery stores, 2% back in rewards for qualifying online purchases, and 1% back in rewards on all other qualifying purchases.
Recently, Wayfair, Boston, reported an 84% increase in second-quarter sales and turned its first quarterly profit since it went public in 2014.
Earnings of $3.31 a share were more than triple analysts' estimates of 95 cents a share. Revenue of $4.3 billion topped estimates of $4.04 billion.
E-commerce trends have continued to accelerate amid the coronavirus pandemic as consumers are stuck at home and order online.
"As we all are spending more time at home, Mastercard "will work with Citi and Wayfair to provide Wayfair customers with a convenient and rewarding program," said Meredith Spatz, executive vice president for North America at Mastercard.
Wayfair shares at last check were 5% at $251.55. The stock has nearly tripled this year. And it is trading at nearly 12 times its 52-week low below $22, set in mid-March.