Sainsbury’s Bank which is the finance branch of the Sainsbury’s supermarket brand is looking to take on the British high street banks with 2 new credit cards.
The supermarket chain isn’t new to the financial arena; it already offers other credit cards, savings accounts, mortgages and insurance. The new credit card offerings will offer higher rewards, with one card offering cash back and the other awarding the brands Nectar points.
Stuart McKeggie, head of Sainsbury’s credit card department, said customers using one of the store’s credit cards on average spend 87 per cent more than other customers.
Sainsbury’s and Tesco are potentially serious rivals to the High Street banks, both companies have the financial clout to be able to fund a serious effort against the banks to offer completive credit card deals, as well as other products. Neither of the companies has launched into the all-important current account market yet, though Tesco has indicated that it may do so this time in the next year.
Supermarkets account for a quarter of credit card transactions and Sainsbury’s hope is that combining cards with rewards linked to the stores will help to cement customer loyalty as they try to secure the best financial rewards on their purchases.