PYMNTS-MonitorEdge-May-2024

Houzz To Launch First Credit Card, Co-Branded With Mastercard

Houzz To Launch First Credit Card

Home remodeling and design platform Houzz Inc. is launching its first private-label credit card with Mastercard and Alliance Data.

The Houzz Mastercard will allow customers to earn rewards and access exclusive benefits, Houzz said in a press release.

“Our new credit cards align with our mission to deliver the best experience for home renovation and design, whether you’re building a custom home or decorating a small room,” said Sanjay Raman, vice president of product, marketplace at Houzz.

Users of the new card will have access to special financing options and Houzz Reward Dollars when they shop on and off Houzz.

“With the new Houzz credit offerings, we hope to make home design both enjoyable and rewarding … by helping cardholders earn rewards faster,” said Sherri Haymond, executive vice president, digital partnerships, Mastercard.

The Houzz Shop offers more than 10 million home improvement products, including items for major remodeling projects and custom home builds, as well as furniture and small decor items.

“… we are excited to provide unique marketing and credit programs that extend and strengthen the brand’s relationship with its customers,” said Deb Decker, chief client officer of Alliance Data’s card services business.

For consumers looking to remodel their homes, Houzz provides a treasure trove of information. With the platform, the company can tap into a highly engaged community for research. Most of Houzz’s research is based on analytics and surveys sent to the community, which provides them with real-time information on the health of the market.

Co-branded credit cards are rooted in the early days of retail, when retailers began to work with banks instead of issuing their own cards. In the 1980s, for example, American Airlines and Citibank paired up for AAdvantage credit card. United (Continental Airlines at the time) also launched its own credit card, a strategy that helped companies reward loyal customers.

PYMNTS-MonitorEdge-May-2024