CIBC will become the exclusive issuer of Costco Mastercard in Canada and benefits from Costco's growing client member base
Canadian Imperial Bank of Commerce (CIBC) has agreed to acquire the Costco co-brand credit card portfolio in Canada, which has over C$3bn ($2.38bn) in outstanding balances.
Costco Wholesale is a global retailer with warehouse club operations in 11 countries. It operates 813 warehouses globally and has 105 warehouses across Canada.
Upon closing of the transaction, CIBC will become the exclusive issuer of Costco Mastercards in Canada, which is expected in the early calendar year 2022.
Mastercard will continue as the exclusive payment network for the Costco co-branded credit card portfolio in the country, said CIBC.
CIBC personal and business banking head Laura Dottori-Attanasio said: “We are excited to partner with Costco, one of the best and most recognizable brands in Canada for providing unparalleled value, to enhance the rewards program and deliver even more value to their members.
“This relationship enables us to diversify our credit card portfolio in everyday rewards, grow our market share in payments and provides a meaningful opportunity to deepen relationships by meeting the financial needs of Costco members.
“We’re looking forward to welcoming Costco members to CIBC, and we’re committed to providing a great client experience and earning more of their business through our expert advice and industry-leading solutions as we help make their ambitions a reality.”
The new CIBC Costco Mastercard is said to provide rewards for shopping at all Costco warehouses and on its website and serves as the Costco membership card.
Existing Capital One Costco Mastercard cardholders can use their card until they receive a new CIBC Costco Mastercard, which is expected in early 2022.
CIBC has been an issuer of credit cards in Canada, with 30 years of co-brand experience that includes national deployments and supporting retail locations.
The company said that the transaction reflects its focus on the Canadian consumer franchise, and strengthens its relationship with new clients from Costco’s growing member base.
Costco Eastern and Canadian divisions executive vice president/COO, chief diversity officer Joe Portera said: “As we look to the future needs of our members, we believe that CIBC is well-positioned to help drive even more benefits of a Costco membership to Canadians.”
Costco SVP, Canada country manager Pierre Riel said: “Our members and CIBC clients expect us to deliver payment options that meet their needs.
“Through enhanced offerings such as leading digital capabilities, robust features and stronger rewards, our members will have even more ways to get the most out of their membership.”