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Woolworths announces MasterCard launch date

Woolworths announces MasterCard launch date

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Date Published : Friday, August 15, 2008

Retailer Woolworths has announced that its Woolworths Everyday Money Credit Card will be launched on August 26th, the Sheet has reported.

Australia's largest retailer signed a heads of agreement with HSBC Australia in February for the issuance of a Woolworths general purpose credit card, which will now be available by the end of August.

According to the company's figures, Woolworths processes 114 million credit card transactions in its stores, equating to around 11 per cent of the entire country's credit card transactions.

Globally, HSBC has a number of long-term partnerships with large retailer credit cards including Saks in the US along with Marks & Spencer and John Lewis in the UK.

HSBC manages over 125 million credit cards worldwide, according to its chief executive Stuart Davis.

Mr Davis has claimed that the combination of HSBC's "global strength and our local customer focus is critical to meeting the needs of Woolworths customers in Australia".

"The assets that both organisations bring to this relationship put us in a strong position to deliver a unique value proposition to Woolworths customers," he added earlier this year.

According to Business Spectator, Moody's Investors Service has downgraded its outlook on the bank financial strength rating of HSBC Australia to stable from positive.

The investment costs of its credit card partnership with Woolworths and its increased exposure to unsecured personal loans, among other rationale, are cited as reasons for the downgrade, according to reports.

HSBC Australia offers a range of bank accounts, credit cards and house loans. It generated earnings before tax for the six months leading up to June 30th of $108 million.

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