Kohl’s and Capital One Extend Partnership, Plan Co-Branded Card
A popular retailer and a ubiquitous credit card issuer are set to continue their long-held partnership. Today, Capital One and Kohl’s announced a multi-year extension of their credit card program agreement. This happens to be the second extension of the partnership, with the last one coming in 2014.
Currently, Capital One already issues Kohl’s private label store credit card. However, as part of the contract extension, the retailer and the bank are planning a co-branded credit card. According to a press release, a pilot program for such a card could is to arrive as early as 2023.
Speaking on the partnership with Capital One, Kohl’s CMO Greg Revelle said, “The Kohl’s credit program is an invaluable piece of our loyalty program and we are pleased to continue this important partnership with Capital One to bring the best value to our customers. For many years, Capital One has been a strong partner and we look forward to building upon our work together to innovate and drive excellence in the customer experience.”
Capital One’s SVP of Card Partnerships Buck Stinson stated, “From the start of our partnership with Kohl’s in 2011, our shared focus on innovation and growth has allowed our organizations to strategically invest to deliver exceptional value to customers. This extension is a testament to our commitment to building long-standing, mutually beneficial partnerships and demonstrates how we build relationships and deliver results over the long-term.”
Incidentally, Kohl’s isn’t the only retailer that Capital One partners with for co-branded cards. For example, last fall, the bank announced a slate of new rewards credit cards alongside the Williams-Sonoma Inc. family of brands. That line-up includes the Key Rewards Visa, Williams Sonoma Key Rewards Visa, Pottery Barn Key Rewards Visa, and West Elm Key Rewards Visa. All four cards options have a private label edition as well.
Generally speaking, private-label credit cards typically aren’t a great idea for consumers. This is because they often have lower credit limits than other credit cards (resulting in higher utilization rates) and can only be used at a single retailer. Given this reality, loyal Kohl’s shoppers who have overlooked the existing Kohl’s Card for these reasons will certainly be delighted to hear that a co-branded card is in the works. While the details about what this product will have to offer aren’t yet known, the flexibility that co-branded cards feature — such as the ability to use the card at a much wider variety of places — should make it a better pick for most consumers. Of course, we’ll need to wait until at least 2023 to learn more about this Capital One Kohl’s card.