John Lewis To Launch Credit Card with HSBC

Department store John Lewis, in conjunction with HSBC high street bank, is to launch a credit card partnership for the UK. The partnership will rejuvenate the current store card the departments shore has offered for more than 40 years. Also valid at the group's supermarket chain, Waitrose, the new card will counteract the decline of its store card since John began accepting credit cards four years ago.

As with most credit cards, reward points can be earned for cardholders, worth 1 per cent of any purchase made in one of its department stores or supermarkets, and 0.5 per cent of purchases made elsewhere. Vouchers will be given to customers in lieu for points.

Customer research suggested there was significant demand for a John Lewis branded credit offer. Interest on the card will be charged at 13 per cent, which the group said was lower than the rate charged by cards currently held by 80 per cent of its 5m regular customers.

The card is initially being offered to John Lewis employees - who make up the partners who own the business - and the group's existing store cardholders. John Lewis also plans to avoid the problems experienced by Marks & Spencer when it began to automatically upgrade customers people from its store card to its new &More credit card.