Hudson’s Bay Launches Contactless Payment Card

Need to Know

• The new Hudson’s Bay Mastercard is a partnership between HBC and digital financial services provider Neo Financial.
• The card will be integrated with the user’s smartphone, and will offer security features such as facial recognition and the ability to disable the card directly through its app.
• Hudson’s Bay will introduce tap-and-go contactless payment at its stores later this year.

Analysis

HBC is rolling out a new digital credit card that will be 100% contactless and accessed exclusively through a user’s smartphone.

The Hudson’s Bay Mastercard, in partnership with fintech Neo Financial, will offer no annual or over-limit fees. Customers will be able to apply for the card and open an account within minutes when the application process opens in March for customers outside of Quebec, and in April for residents of Quebec. Cardholders will be able to access their account info via a mobile app, which will also offer enhanced security features such as facial recognition, proactive alerts, and the ability to freeze or replace a card directly from within the app.

“Our partnership with Hudson’s Bay demonstrates the opportunity in digital-first financial products and solutions that drive better value and experiences for customers,” Andrew Chau, CEO of Neo Financial, said in a statement. “Neo Financial is focused on reimagining every financial touchpoint Canadians have, and rebuilding those experiences from the ground up with a customer-first approach. The Hudson’s Bay Mastercard powered by Neo is the next generation of credit card and retail innovation that will provide a unique and highly rewarding experience for all.”

All Hudson’s Bay customers are being invited to register to be notified when the application process for the Hudson’s Bay Mastercard opens. The new card offers 2% cashback, and double the Hudson’s Bay Rewards points on every dollar spent at The Bay, or two points on almost every dollar spent elsewhere, reflecting HBC’s renewed commitment to its rewards program. Current HBC cardholders can continue to use their existing card until May 3, 2021, and Hudson’s Bay will introduce tap-and-go contactless payment at its stores later this year.

“As we drive our digital-first strategy, we are evolving across all facets of our business to elevate the customer experience,” Iain Nairn, president and CEO of Hudson’s Bay, said in a statement. “Partnering with a Canadian company, built on innovation and an entrepreneurial spirit, will help us deliver a better shopping experience to Hudson’s Bay customers and, in fact, reward them as they shop with us.”

HBC is making a strong push towards new digital infrastructure, hoping to cultivate stronger customer loyalty through an enhanced online experience. In September 2020, the retailer announced a revamped digital loyalty program which, among other benefits, eliminated the need for a physical rewards card, allowing customers to earn points simply by providing the email address or phone number associated with their rewards account. The Bay is also set to launch a third-party marketplace later this year, following in the (lucrative) footsteps of other retailers such as Walmart and Loblaw, which have also ventured into third-party selling.