IKEA brings affordability to more people - Joins hands with Mastercard & Citi to launch the ‘IKEA Family Credit Card by Citi’October 15, 2020 | India | By Barkha Patel
The credit card offers reward points, offers and benefits to enable people to turn their dream homes into reality
To make shopping at IKEA, the world's most loved home furnishing company, more affordable, convenient and rewarding, Citibank India (Citi) and Mastercard today jointly announced the launch of ‘IKEA Family Credit Card by Citi’. This card provides instant in-store card bookings, direct payments via Bharat QR, accelerated reward points and attractive EMIs. Furthermore, the card will also offer reward points on all purchases with instant reward redemption at IKEA.
The IKEA Family Credit Card by Citi is available to IKEA Family members at ‘zero joining fee and zero annual fee’ and can be used for purchases made on IKEA’s online and offline stores, or anywhere in the world that accepts credit cards. Together with Citi, IKEA has secured an affordable EMI option for the customers that extends from 03 to 48 months, allowing even more flexibility. The in-store card application process is completely digital with instant verification and immediate usage, a first for any co-branded card in India. Customers can simply apply for the card when they visit the IKEA Hyderabad store or leave a message on the IKEA website expressing an interest to apply.
Speaking on the launch, Kavitha Rao, Country Commercial Manager at IKEA India said, “We are excited to launch the IKEA Family Credit Card by Citi; it is an important step for us to make home furnishing more affordable for our customers in India. It brings us closer to our vision of creating a better everyday life for the many people through our well designed, functional, and affordable home furnishing products. Through this initiative, we hope to make it possible for our customers to turn their dream homes into reality and enjoy their everyday life at home better with their families.”
IKEA started its retail operations in India in August 2018 with its first store in Hyderabad. In 2019 it started its online services in Mumbai, Hyderabad, and Pune. Over the next few years, the company wants to reach 100 million customers through the omnichannel route, which will be a combination of online and offline stores, comprising multiple store formats.
"The card is an excellent example of the way we want to meet the needs of the customers in India. It makes our products affordable to the many, it is executed in a simple, digital and secure manner making access to credit faster for the customers. We want to ensure IKEA continues to be a great place to shop while meeting the growing need for personalization, relevance and to be easy-on-pockets for the customers.” said Preet Dhupar, Chief Finance Officer and Sustainability Lead, IKEA India.
Mastercard is a leader in the global co-brand space with a significant focus on a digital-first experience. With ‘The IKEA Family Credit Card by Citi’, Mastercard along with Citi has for the first time in India, joined hands with IKEA to offer a unique customer proposition.
On the alliance, Porush Singh, Division President, South Asia, Mastercard commented, “Mastercard is excited to partner with Citi and IKEA for the launch of IKEA’s first co-branded card in India. Over the last few years, co-branded cards have emerged as a way to generating loyalty of customers to the partner as well attracting new shoppers. Given Mastercard’s global leadership in the co-branded card space, and the constant emphasis on enhanced user experience, safety and security of payments, the IKEA Family Credit Card by Citi will provide greater value to cardholders who are shoppers at IKEA. The partnership will also go a long way in driving affordability among consumers, not just during the upcoming festive season but even thereafter.”
Citi continues to lead innovations that continually enhance customer experience. With the ‘IKEA Family Credit Card by Citi’, a unique, digital, and integrated on boarding experience, encompassing instant approval, digital issuance, and instant usability via the Citi app, incorporating Bharat QR has been created. The co-brand comes with never-expiring rewards for all purchases. Earn 3X reward points for purchases at an IKEA store or IKEA online, 2X reward points on dining spends and 1X reward point elsewhere. The accumulated points can be redeemed in part or full at IKEA seamlessly. Additionally, all card EMI purchases at IKEA store will be at preferential rates. IKEA Family members, with this credit card, will earn accelerated reward points at IKEA and benefit from innovative affordability solutions.
“Our association with IKEA has grown from a pure banking relationship with the launch of IKEA’s first store, to one of innovation and partnership that we expect will delight IKEA customers in India. We will continue to partner with IKEA on their universal banking needs in India,” said Anand Chandrasekhar, Head of Global Subsidiaries Group in India, Citi.
IKEA and Citi's banking relationship extends several decades and spans 11 countries. Besides catering to IKEA’s banking needs across cash management, digitization and capital flows in India, Citi also acts as an advisor on industry best practices. This is the very first consumer credit card partnership between IKEA and Citi globally.
In FY19, the country registered 31.34 billion retail digital payments. Further, the Ministry of Electronics and Information Technology (MeitY) has recently increased the target of digital transactions for FY20 to 45 billion. Also given the connectivity and access today, it is becoming increasingly important to consider safety and security from a global point of view. Mastercard is committed to creating innovative payments solutions that deliver enhanced safety and security at every touchpoint, to enable simple, frictionless consumer experiences.
About Ingka Group and IKEA India, www.ikea.com
Ingka Group (Ingka Holding B.V. and its controlled entities) is one of 12 different groups of companies that own and operate IKEA retail under franchise agreements with Inter IKEA Systems B.V. Ingka Group has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Ingka Group is a strategic partner in the IKEA franchise system, operating 374 IKEA stores in 30 countries. These IKEA stores had 839 million visits during FY19 and 2.6 billion visits to www.IKEA.com. Ingka Group operates business under the IKEA vision - to create a better everyday life for the many people by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford it.
IKEA India, part of Ingka Group opened its first retail store in Hyderabad in August 2018, followed by online stores in Mumbai, Hyderabad and Pune in 2019. Mumbai is the first IKEA market to launch with online without physical stores. The ambition is to enter the top Indian cities with a multichannel approach. IKEA Purchasing has been sourcing from India for over 35 years. There are 60+ suppliers with 45,000 direct employees and 400,000 people in the extended supply chain in India producing for IKEA stores worldwide. Two Indian social entrepreneurs are engaging 1500+ women artisans in India to make special limited-edition collections for IKEA!
About Citibank, www.citibank.co.in
Committed to India for over 115 years, Citi takes pride in being a premier locally embedded financial institution, backed by an unmatched global network. Citi is an employer of choice in India offering consumers and institutions a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, brokerage, treasury and trade services, securities and fund services and wealth management. In line with our commitment to make a positive difference in the communities we work, Citi India's citizenship program targets its strategic efforts in the priority areas of Financial Capability & Asset Building, Microfinance, Enterprise Development, and Youth, Education & Livelihoods.
Additional information may be found at Facebook www.facebook.com/citiindia
About Mastercard (NYSE: MA)
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.