Demand for the Wealthsimple's credit card was more than twice as popular as expected, according to an August e-mail to clients.Giordano Ciampini/The Canadian Press
When fintech Wealthsimple Financial Corp. unveiled its new credit card in June, it quickly became one of its most sought-after products. The card – which offers 2-per-cent cash back on all purchases and no foreign exchange fees – had more than 200,000 Canadians on its wait-list within weeks, the company said.
Four months later, many are still waiting.
On Reddit, users have voiced frustration that the rollout seems uneven. Some customers said they’ve had the card for months, while others who joined the wait-list early said they still haven’t been invited to apply.
When the Visa card was announced, Toronto-based Wealthsimple told clients who wanted the card that they would need to join a wait-list. At the time, it didn’t explain how invitations would be issued. While institutions typically allow people to apply for credit cards on a first-come, first-served basis, the company chose to prioritize long-time and high-value clients, it said. That wasn’t communicated until several weeks after the launch.
Wealthsimple is now acknowledging that it could have been transparent about the rollout.
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“I think the main thing that we could and should have done differently is being more clear with our clients when we announced the credit card and the wait-list, how the wait-list would work,” said Timur Kalimov, vice-president of product at Wealthsimple, in an interview. “People assumed it was a first in, first out thing, which was never the plan.”
Demand for the credit card also was more than twice as popular as expected, according to an August e-mail to clients.
Experts say the slow rollout reflects both the company’s struggle to meet stronger-than-expected demand and a broader strategy to encourage users to consolidate more of their money with the platform and attract new customers.
Barry Choi, a credit card and loyalty expert (who is also a regular Globe and Mail contributor), called the level of interest “exceptionally high,” especially for a company that serves roughly three million Canadians. He said the pace of Wealthsimple’s rollout is “highly unusual,” even among fintechs making a foray into credit cards.
In the same August e-mail, Wealthsimple told clients it planned to issue 100,000 cards this year – a target it’s still on track to meet, Mr. Kalimov said – but warned that some people “will not get their cards as soon as we’d like.”
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The message also explained how the company is prioritizing applicants. First in line are long-time clients; “Generation” members with assets of at least $500,000; and “Premium” clients with at least $100,000 in assets and monthly direct deposits of $4,000 or more. Those in the priority groups can expect invitations by the end of 2025, it said. Wealthsimple added that it set aside some cards for new clients.
Mr. Kalimov said the goal was to reward existing clients. “We want to make sure that people who have committed to Wealthsimple by setting up their paycheque here, by consolidating their assets here, do get access to it.”
After the launch, some users posted on Reddit that they’d received invitations to apply. A few weeks later, Wealthsimple sent e-mails offering customers the chance to skip the wait-list if they deposited at least $25,000, along with a limited-time offer of up to 5-per-cent cash back. Mr. Kalimov compared the move to a typical sign-up bonus used by other credit card providers.
Wealthsimple also initially said the card would have an annual fee of $120. Just weeks after the launch, it doubled the fee to $240. The fee is waived for high-asset clients and those with monthly direct deposits of at least $4,000.
Mr. Kalimov said that the fee increase was about “making sure that you’ve got the right set of economics to make sure that you can continue growing and scaling the card.” He called the launch “unprecedented” for a non-bank issuer of a Visa credit card. The company’s approach is to “learn and iterate quickly,” Mr. Kalimov said.
“We want as many of our clients as qualified to have a credit card. We’re not creating artificial constraints here,” he added.
To be eligible for the card, a client must meet at least one of the following criteria, according to its website: a personal income of at least $60,000, household income of at least $100,000, total savings and investments of at least $250,000, or annual credit card spend of at least $15,000.
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Still, some wealthier clients said they are still on the wait-list.
Nick So, a 39-year-old Generation client who has been with Wealthsimple since 2016, said he joined the wait-list immediately after the June announcement but still hasn’t received an invitation to apply. The Vancouver-based man had hoped to use the card for a recent overseas trip to avoid foreign-exchange fees.
“I did reach out by e-mail to the customer support,” he said, but it didn’t move the needle. “I ended up having to just go with a different card at a different bank.”
That’s the risk of a slow rollout, Mr. Choi said. “Consumers are going to change their minds very quickly with so much credit card choice out there.”
The launch comes as Wealthsimple cements its place among Canada’s most valuable tech companies. On Monday, it announced it raised $750-million in one of the largest domestic venture capital financings in recent years, giving it a $10-billion valuation. A week earlier, Wealthsimple revealed it surpassed $100-billion in assets under administration, nearly doubling from a year ago.
With reports from Clare O’Hara
Editor’s note: A previous version of this story referred to Wealthsimple as Wealthsimple Technologies Inc. That is a subsidiary of the company, whose correct legal name is Wealthsimple Financial Corp. The story has been updated.