CIBC nabs Costco credit card partnership in Canada

CIBC nabs Costco credit card partnership in Canada

Spread the love

CIBC nabs Costco credit card partnership in Canada

Canadian Imperial Bank of Commerce will become the issuer of credit cards at Costco’s stores in Canada as the membership-only retail chain ends a previous deal with Capital One Financial.

CIBC said Thursday that it has reached a long-term agreement with Costco Wholesale that is expected to start early next year. The Toronto-based bank did not disclose the length of the contract or its financial terms. CIBC will also acquire from Capital One a portfolio of more than $ 3 billion in existing card balances.

CIBC says its new partnership with Costco reflects its desire to grow its Canadian consumer banking business.

Bloomberg

For CIBC, which offers travel-related credit cards with Air Canada, the deal offers a way to attract consumers who are more interested in earning rewards for their spending on groceries and other household essentials. The bank said that the deal reflects a strategic focus on growing its Canadian consumer franchise.