Capital One Financial Corp has agreed to sell to Citigroup Inc its USD7bn portfolio of private label and co-branded credit card accounts linked to electronics retailer Best Buy Co inc.
The company which is among the largest credit card issuers in the US have not disclosed the selling price saying there would be no significant gain or loss in the transaction. Citigroup has said it will issue and manage Best Buy credit cards in the US in a deal that will not affect its earnings this year materially. As a result, transactions are expected to close in the third quarter.
It seems Citigroup’s cards division for stores has come full circle since the financial crisis. The bank had initially planned to sell the unit but decided to keep it after loss rates on the cards fell.
Citi’s retailer cards business now services 90 million accounts for chains such as The Home Depot Inc, Macy’s Inc and Sears Holdings Corp.
As the demand for immediate payments implementation grows in the United States, Iliad Solutions have identified one of the largest risks to face the payments industry over the next few years.
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.