Best Buy Canada and Chase Canada recently discontinued one of its co-branded credit cards. It appears that Best Buy is looking for a new financial institution to partner up with. It seems that it has decided on partnering with Desjardins to manage its private label credit card portfolio.
The partnership sees Desjardins acquiring both the Best Buy Canada and Future Shop private-label credit card portfolios. That is going to be a very big hit on Chase Canada. I’m not sure what is happening with Chase Canada, because it is also losing its partnership with Sears Canada in 2015.
I have been hoping for some of the minor financial institutions to have more co-branded credit cards. That being said, both Chase Canada and Desjardins are both small players in the market, so taking business away from the other small player does not affect the competition too much. Furthermore, Future Shop and Best Buy already have co-branded credit cards, so this is really just a shift of power.
I am still hoping to see more loyalty programs pairing up with financial institutions to offer more co-branded credit cards. So I really hope that Chase Canada has something up their sleeves. At this rate they might entirely shut down in Canada.