Alliance Data recently announced that the company hasentered into a long-term agreement to provide co-brand credit card services forBJ’s Wholesale Club. As the two companies work together, the card portfoliowill transition to MasterCard. BJ’s current co-brand program is a Visa-brandedproduct issued by Barclays. This portfolio will be one of the largest amongAlliance Data’s more than 130 private label and co-brand credit programs.
“BJ’s Wholesale Club is veryexcited to partner with Alliance Data and MasterCard on our new co-brand creditcard program,” said Laura Sen, president and CEO of BJ’s Wholesale Club ina press release. “Leveraging Alliance Data’s skillset in loyalty andmarketing as well as MasterCard’s expertise in technology and security, we areconfident our new credit card program will provide a value proposition that isunparalleled in the warehouse club channel.”
The acquisition significantly enhances the Alliance Data’sposition in the co-brand business. The company has historically specialized inproviding private-label services with a particular focus on specialtyretailers. Establishing co-brand portfolios with larger companies could provideanother leg of growth for the company.
The acquisition is also a significant win for MasterCard.Co-brand cards generate a significant amount of the industry’s purchase volume,and the addition of the BJ’s portfolio will strengthen the company’s consumercredit card business. This transition is the latest in a string of wins forMasterCard’s co-brand business. Notably, WalMart’s and Target’s co-brandportfolios are also transitioning to MasterCard.
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