Alliance Data Systems’ Ohio-based card services unit has inked a new long-term agreement to offer private label credit card services and assume management of an existing co-brand card program in the US for Toyota.
Alliance Data has also signed an agreement to acquire Toyota’s existing portfolio of co-brand credit card accounts.
The deal is subject to regulatory approval and customary closing conditions, with completion of the portfolio acquisition scheduled by the fourth quarter of 2015.
Under the terms of the deal, Alliance Data will deliver credit card marketing services for the Toyota and Lexus co-brand credit cards, and introduce new private label credit cards for both brands with the help of customer-focused insights and analytics.
The two card programs will reward cardmembers for every purchase, with additional points earned for Toyota or Lexus brand purchases, including vehicle service and parts.
Earned points can be redeemed toward additional Toyota and Lexus service, parts or accessories, or a customer’s next Toyota or Lexus vehicle.
The new private label credit cards will also provide flexible financing options.
Alliance Data will develop mobile credit apps for the Toyota and Lexus brands to deliver a brand-centric, integrated account management and rewards experience.
The firm will also roll out a customised dealer portal incorporating access to key dealer performance data, marketing materials, training tools as well as other program support materials.
Besides, a direct rewards redemption capability will be leveraged to offer effective dealership support.
The Epsilon business of Alliance Data will deliver in-dealership support of the card programs by identifying and communicating to existing Toyota vehicle owners with personalised permission-based marketing messages such as email and direct mail.
Alliance Data said that following takeover, the performance of the Toyota co-brand card portfolio will be consistent with its overall co-brand credit card portfolio, while all new co-brand and private label credit card accounts will be consistent with its credit quality standards.