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M&S is in talks to finalise an agreement with HSBC to establish a new banking and loyalty “superapp”, according to Sky News.
The new seven-year agreement would encompass payments, financials services as well as the retailer’s Sparks loyalty programme.
Under the existing agreement with HSBC, whose UK arm owns M&S bank, the retailer is entitled to a 50% share of the bank’s profits. Sources at Sky News said that talks between the two parties are now focused on reaching a deal before the expiration of the current contract in the coming weeks.
M&S Bank currently has more than three million customers and offers a variety of services, including personal loans, travel insurance, store payment cards, and a buy-now-pay-later credit product.
One possible outcome of the agreement could involve the retailer acquiring an “ownership position in due course” but the probability remains unclear, Sky News added.
Investing banking boutique Fenchurch Advisory Partners has been advising M&S on the talks, while a source added that a public announcement could be made as early as next month.
M&S has been contacted for comment.
