Marketing and loyalty solutions firm Alliance Data Systems’ card services business unit is set to provide co-branded and private label credit cards for furniture retailer IKEA Group in the US.

Under the terms of the deal, Alliance Data will develop a loyalty-driven credit card programme that will combine customer insights and industry benchmarking to deliver a customised rewards and benefits package for IKEA’s customers.

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The co-branded rewards card could be used at IKEA as well as for everyday expenses such as gas, groceries and utilities.

Alliance Data intends to use its digital and mobile platform such as Frictionless Mobile Credit to optimise the customers’ store and online experience.

The partnership will also see the launch of IKEA Projekt Card that will function as a store-branded financing platform for qualified customers. It will also enable customers to pay for larger purchases over time.

IKEA US chief operating officer Jacqueline DeChamps said: “Alliance Data really understands our company and will deliver meaningful credit and loyalty programmes, while constantly innovating based on our customer needs.

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“Leveraging Alliance Data’s skillset in loyalty and marketing, we are excited about how this new partnership will enhance our customers’ shopping experience across channels with added convenience and benefits.”

Alliance Data president of card services business Melisa Miller said: “We are confident that our lifecycle marketing approach will attract existing and new IKEA customers as lifelong cardmembers, motivated by a credit and loyalty experience that reflects the deliberately different approach that has earned IKEA its leadership position in the industry.”