J.Crew Forms Credit Card Partnerships With Mastercard and Synchrony

Apparel seller J. Crew has launched a multi-year credit card program with Synchrony and Mastercard.

The collaboration, announced Wednesday (Nov. 29), will see J. Crew and Synchrony team to launch a private label credit card program, and then work with Mastercard to introduce a co-branded credit card designed for J.Crew and J.Crew Factory customers next year.

“As part of this partnership, Synchrony will acquire J.Crew’s existing credit portfolio. Synchrony will also provide J.Crew with a full suite of digital capabilities including mobile wallet provisioning, robust pre-approval capabilities, Scan to Apply and direct to a customer’s device credit application options,” the companies said in a news release.

According to the release, the partnership with Mastercard is the first time a new J.Crew Group co-branded card will be available to make purchases outside of J.Crew to obtain rewards and powered by Mastercard’s network.

“As consumers seek more curated financial services and products, it’s important that we continue to provide choices and benefits that match their lifestyles,” Chiro Aikat, Mastercard’s executive vice president for U.S. market development, said in the release. “In partnership with J. Crew and Synchrony, we’re bringing safe and seamless offerings to J.Crew shoppers that add value and enhance loyalty for their favorite brands.”

PYMNTS examined the use of white-label store cards earlier this year, arguing that both private label cards, which can only be used at the retailers’ stores, and co-branded cards, which can be used at various merchants on the same network, offer advantages.

“On the consumer side of the equation, store cards can come with a variety of benefits. For example, consumers with lower credit scores are often more likely to be approved for store cards than general-purpose cards,” PYMNTS wrote. 

“If these consumers are careful with their spending and diligent in paying off their balances, store cards can help them build better credit scores,” PYMNTS added. 

In fact, past research by PYMNTS Intelligence has shown many consumers use store cards because they believe these cards make it easier to keep track of payments and make larger purchases. The report also found that many shoppers who paid with store cards did so because payment was fast and comfortable.

And both private-label and co-branded cards offer merchants a chance to build customer loyalty, which, in turn, can help increase revenue. PYMNTS found that close to one-third of consumers will spend more with brands with which they have built relationships.